Yes, 700c - the wheels are in fact Shimano R500 or whatever.. the cheap 24 spoke deep-ish rim road jobs.
I had this:

IMG_8774 by PeterPoddy, on Flickr
Which had cheap Shimano wheels on it, IIRC the same ones you have.
To be frank, they are fooking SHITE for load carrying. That bike was all over the place, it simply couldn't cope with even a mild load. I swapped the wheels for some cheap 36 spoke touring wheels which helped, but I'll tell you right here and now, a 700c bike, (Unless it's a purpose built tourer, and not really even then...) simply won't carry a load like an MTB.
I swapped the Roadrat there for a Carerra Subway One. Which was faaaaaaaar better for the job in hand. Slower, yes, but better in every other way for commuting and touring with luggage. It's only downfall was vee brakes (Scary with a trailer in the wet in Cornwall) so now I have the Inbred in the first pic, which speed wise is somewhere between the two, but also better than either.
Get an MTB for the job.