Identify the correct alternative that indicates the number of times each letter appears in the given word "INCIDENCE".

Let's count the occurrence frequency of each distinct letter in the word I N C I D E N C E:
* I: Appears at positions 1 and 4 $\to$ 2 times
* N: Appears at positions 2 and 7 $\to$ 2 times
* C: Appears at positions 3 and 8 $\to$ 2 times
* D: Appears at position 5 $\to$ 1 time
* E: Appears at positions 6 and 9 $\to$ 2 times

So the frequency format is: I2 N2 C2 D1 E2. This corresponds exactly to Option C.