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Option C The lacI gene coding for the repressor lies nearby the lac operon and is always expressed (constitutive). If lactose is missing from the growth medium, the repressor binds very tightly to a short DNA sequence just downstream of the promoter near the beginning of lacZ called the lac operator. In option A and C there should be confusing, but the A option says absence of lactose. And negative regulation means when lactose very low. so we can eliminate option A.