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Mediation is defined as a conflict resolution method that involves a neutral party to assist the disputing parties in reaching a mutually acceptable agreement. The role of the mediator is to facilitate discussion, help clarify issues, promote understanding, and guide the parties toward finding common ground. The mediator does not impose a solution but rather supports both parties in exploring options and negotiating terms that satisfy their interests.

This approach is distinct from options suggesting legally binding agreements or enforcement actions; mediation focuses on cooperation rather than compulsion. Unlike a negotiation process without a third party, mediation inherently relies on the presence of an impartial facilitator to encourage communication and resolution. The absence of this neutral party would not constitute mediation but rather a direct negotiation between the parties involved. Thus, option C accurately captures the essence of what mediation entails in the context of conflict resolution.