Correct Answer - C
Calcium hydroxide is prepared by adding water to quicklime `(CaO)`.
`underset("Quick lime")(CaO(s))+H_(2)O(l) rarr underset("Slaked lime")(Ca(OH)_(2)(s))`
It is a white amorphous powder. It is sparingly soluble in water. So, it forms a suspension of slaked lime in water which is called milk of lime and the clear solution obtained after the suspension settles is known as lime water.