Final answer:
IP and IPX operate at the network layer of the OSI model, which manages data routing and addressing.
Step-by-step explanation:
Internet Protocol (IP) and Internetwork Packet Exchange (IPX) both function at the network layer of the OSI model, which is responsible for handling the routing of data and providing a logical addressing scheme to uniquely identify network devices. Therefore, the correct answer to the question is c. Network Layer.
The network layer is essential in the OSI model as it determines the best physical path for the data to travel from its source to its destination, which could involve multiple routes across diverse networks.