(C) Evaluation
In the AI Project Cycle, the Evaluation stage involves testing the model on newly fetched data to assess its performance and improve it.
The source passage (section 1.1) explicitly states: "you now need to test your model on some newly fetched data. The results will help you in evaluating your model and improving it." This directly maps to the Evaluation stage. Students often confuse this with Modelling (which is about building/selecting the model) or Deployment (which comes after evaluation). Remember the sequence: Modelling → Evaluation → Deployment.