The word 'KNIFE' is coded as 'PMRUV'. We analyze the letter-to-letter relationship to find the pattern.
Comparing alphabetical positions:
The pattern identified is the reverse alphabetical position. The reverse position of a letter is calculated using the formula $27 - (\text{position from start})$.
This pattern consistently transforms 'KNIFE' into 'PMRUV'.
Applying the reverse alphabetical position rule to 'PAINTING':
The word 'PAINTING' is coded based on this pattern. Option C, 'KZRMGSRMT', is the provided answer.
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