This happens when a magnet is passed through a wire loop.

a. static electricity is created
b. mechanical energy is converted to electrical energy
c. electrical energy is converted to mechanical energy

The best and most correct answer among the choices provided by your question is the third choice or letter C.  When a magnet is passed through a wire loop, Electrical energy is converted to mechanical energy.

This phenomenon is famously called as the electromagnetic induction. Electromagnetic or Magnetic induction is the production of an electromotive force or voltage across an electrical conductor due to its dynamic interaction with a magnetic field.

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