How to free memory from char array in C

Local variables are automatically freed when the function ends, you don't need to free them by yourself. You only free dynamically allocated memory (e.g using malloc) as it's allocated on the heap:

char *arr = malloc(3 * sizeof(char));
strcpy(arr, "bo");
// ...
free(arr);

More about dynamic memory allocation: http://en.wikipedia.org/wiki/C_dynamic_memory_allocation