(c)
The given lines are perpendicular to each other.
$\therefore Perpendicular\ distance = \frac{\left| r_{1} - r_{2} \right|}{\sqrt{2}} = \sqrt{2}$
$\Rightarrow \ r_{1} - r_{2} = 2$
The difference between the $y$-intercepts $= 2$
This can happen for five combinations {(0, 2), (1, 3), (2, 4), (3, 5), (4, 6)}.
The difference between the $x$-intercepts $= 2$
This can happen for five combinations.
Hence, total number of squares $= 5 \times 5 = 25$