Step-by-step Solution:

Solution

To find the code for 'C', we need to find the unique number assigned to each letter by comparing the given words and their codes.

Analysis:

• By comparing SON (458) and LOTS (8124), the common letters are 'S' and 'O' and the common numbers are '4' and '8'. So, {S, O} = {4, 8}.
  
• The letter 'O' appears in four words. The only number common to all four corresponding codes (12345678, 1435, 8124, 458) is 4. Therefore, O = 4.
• Since O = 4, we can deduce that S = 8.
• Using S=8 and O=4 in SON (458), we find that N = 5.
• Using O=4 and N=5 in LOAN (1435), we find {L, A} = {1, 3}.
  
• Using N=5 in DAN (537), we find {D, A} = {3, 7}.
  
• By comparing the last two points, the common letter is 'A' and the common number is '3'. So, A = 3. This also tells us L = 1 and D = 7.
• Using L=1 in LOTS (8124), we find that T = 2.

Conclusion:

The letters in SCOTLAND are {S,C,O,T,L,A,N,D} and their codes are a permutation of {1,2,3,4,5,6,7,8}.
We have found codes for S,O,T,L,A,N,D to be {8,4,2,1,3,5,7}.
The only letter left in SCOTLAND is 'C', and the only number left in the code set is '6'. Therefore, the code for 'C' is 6.