Final answer:
James Burbage built the first permanent stage in the city, which was 'The Theatre' in 1576, marking a significant moment in the history of Elizabethan drama. Hence, option (C) is correct.
Step-by-step explanation:
The first permanent stage in the city was built by James Burbage. In 1576, he constructed The Theatre, which was the first commercial public theatre, located in Shoreditch, outside of the City of London. This pivotal development came after James Burbage became the head of the first important troupe, the Earl of Leicester's Men, which was licensed in 1574.
The establishment of The Theatre led to a flourishing of the theatrical scene and was soon followed by other theatres, catalyzing the rich era of Elizabethan drama. It's worth noting that during this time all actors were males, with young boys playing the female roles, and this continued until the rise of female actors on the English stage.