The correct interpretation of the 68-95-99.7 rule is:
\[
\boxed{C. \text{The rule states that about } 68\%, 95\%, \text{ and } 99.7\% \text{ of the data points in a normal distribution lie within } 1, 2, \text{ and } 3 \text{ standard deviations of the mean, respectively.}}
\]