(c)
Distance from centre (2, 1) to the line $3x + 4y - 5 =$ radius of circle
$\Rightarrow \ \frac{|3(2) + 4(1) - 5|}{\sqrt{3^{2} + 4^{2}}} = r\ \ \ \Rightarrow \ \ r = 1$
$\therefore$ Equation of circle is
$(x - 2)^{2} + (y - 1)^{2} = 1^{2}$
$\Rightarrow \ x^{2} + y^{2} - 4x - 2y + 4 = 0$