Final answer:
The correct answer to the question is Pragmatics (C), which refers to the interpretation of language meaning beyond the literal words, influenced by context, intentions, and social norms.
Step-by-step explanation:
When we say something we don't actually mean and the intended meaning is beyond the literal meaning, we often rely on certain rules or social norms in our mind that dictate when we should interpret something as literal or not. This processing of meaning that extends beyond the literal interpretation of words is an aspect of Pragmatics, which is the correct answer (C). Pragmatics is a branch of linguistics concerned with the ways in which context contributes to meaning. It involves the interpretation of what people mean in a particular context and how the context influences what is said. It requires knowledge of the speaker's intentions and the social norms that dictate appropriate responses in conversation.