Explanation:

• Option A (Procedures): Incorrect. The Procedures section details the steps required to maintain the IPS and respond to contingencies, not the discretion of portfolio managers.

• Option B (Investment Constraints): Incorrect. This section outlines factors that limit the client's ability to achieve investment objectives, such as liquidity, time horizon, and regulatory requirements, but does not address managerial discretion.

• Option C (Statement of Duties and Responsibilities): Correct. This section specifies the roles and responsibilities of the client, custodian, and investment managers. For institutional clients like pension plans, it includes governance arrangements, such as the discretion granted to portfolio managers in executing the investment strategy.