$A=\left\{1,2\right\}$
$B=\left\{a,b\right\}$
$A\times B=\left\{(1,a),(1,b),(2,a),(2,b)\right\}$
The above operation performed on sets $A$ and $B$ is called Cartesian Product, which is defined as:
$A\times B=\left\{(a,b)\mid a \in A \land b\in B\right\}$
Option $(C)$ is correct.