**Core Concept**
The Consumer Protection Act of 1986 (amended in 2002, but initially enacted in 1986, though the question mentions 1987) in India provides for the establishment of consumer forums at the district, state, and national levels to protect consumer rights. **Consumer protection** and **judicial redress** are key principles.

**Why the Correct Answer is Right**
Since the correct answer isn't directly provided in the query, let's discuss the general framework. The **State Consumer Disputes Redressal Commission** (State Commission) typically hears appeals from the District Forum and has the power to award higher compensation compared to the District Forum. However, without the correct answer choice, we can't delve into specifics.

**Why Each Wrong Option is Incorrect**
**Option A:** Without knowing the specifics, it's hard to pinpoint why this might be incorrect, but typically, the State Commission has a higher limit than the lowest tier.
**Option B:** Similarly, without the correct figure, it's challenging to assess the validity of this option.
**Option C:** This option's accuracy depends on the actual limit set by the Consumer Protection Act for the State Commission.
**Option D:** The same applies here; the correctness would depend on the specified limit.

**Clinical Pearl / High-Yield Fact**
It's crucial to remember that the Consumer Protection Act aims to provide simple, inexpensive, and quick redressal of consumer grievances. Knowing the hierarchy (District, State, National) and their respective jurisdictions is key.

**Correct Answer:** Correct Answer: C. ₹1 Crore.