Overflow is a condition that indicates that the result is too large or too small to fit in the original data type. Here given 2’s complement representation means signed bit representation. Two key points that must remember in a signed operation: MSB is used to indicate the sign of the number. For negative numbers, 2’s complement representation is used. 2’s complement overflow rules: If the sum of two positive numbers gives a negative output, then the sum is overflowed. If the sum of two negative numbers gives a positive output, then the sum is overflowed. In other cases, the sum is not overflowed. Overflow for the signed numbers occurs when the carry-in into the MSB (most significant bit) is not equal to carry out. Now according to the rules, If both A7 and B7 are 1 then S7 must be 0. For this C7 will be 1 and C6 will be 0. Hence, it will give C7.C6’ If both A7 and B7 are 0 then S7 must be 1. For this C7 will be 0 and C6 will be 1. Hence, it will give C7’.C6 When we combine these two, we get C7.C6’ + C7’.C6 (means C7 XOR C6) which is a condition to detect overflow. So, Option C is the answer. Overflow is said to have occurred if: (A7.B7.S̅7 + A̅ 7.B̅ 7.S7) is 1