Directive Principles of State Policy – Correct: Multiple DPSP articles have a direct bearing on education. Article 21A (inserted by the 86th Constitutional Amendment Act, 2002) made free and compulsory education a Fundamental Right for children aged 6–14 years. Consequentially, Article 45 was amended to direct the State to provide early childhood care and education for children below the age of six years. Article 41 further directs the State to make effective provision for securing the right to education.

Rural and Urban Local Bodies – Correct: The Eleventh Schedule (Article 243G), which relates to Panchayats, lists education including primary and secondary schools (Entry 17) as a subject that may be entrusted to them. Similarly, the Twelfth Schedule (Article 243W), which relates to Municipalities, includes regulation of schools (Entry 13) within their functional domain. Thus, both Schedules 11 and 12 have a direct bearing on education.

Fifth Schedule – Incorrect: The Fifth Schedule deals with the administration and control of Scheduled Areas and Scheduled Tribes. It does not contain any specific provision directly concerning education as a subject or policy matter.

Sixth Schedule – Incorrect: The Sixth Schedule deals with the administration of tribal areas in Assam, Meghalaya, Tripura, and Mizoram through District and Regional Councils. While these Councils have limited legislative powers, education does not feature as a substantive subject with a direct constitutional bearing under this Schedule in the manner that provisions 1, 2, and 5 do.

Seventh Schedule – Correct: The Seventh Schedule places 'Education' in the Concurrent List (Entry 25), empowering both the Central and State governments to legislate on education. This was inserted by the 42nd Constitutional Amendment Act, 1976, which transferred education from the State List to the Concurrent List.

Therefore, Option C is the correct answer.