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In the context of ammonia (NH₃), which of the following statements is true regarding its chemical behavior in aqueous solutions?
A) Ammonia acts as a strong acid in water, releasing H⁺ ions.
B) Ammonia is a neutral compound in aqueous solutions and does not affect the pH.
C) Ammonia reacts with water to form ammonium hydroxide (NH₄OH), which is a weak base.
D) Ammonia forms a highly acidic solution when dissolved in water, due to its high ionization constant.