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An encryption scheme consists of a set $\{E_e:e \in K\}$ and a corresponding set $\{D_d: d \in K\}$ of encrypting and decrypting functions, respectively.
For each $e \in K$, there is a unique key $d \in K$ where $D_d=E_e^{-1}$.
An encryption scheme is also called a cipher.
It should be clear that every $e$ is actually a representative of some bijection from $M$ to $C$. In this task, you have to count the number of such bijections and, hence, the number of keys that produce different encryption functions.
Assume that $|M|=|C|=n$ which is given as the input.