The correct option is C They cannot synthesise β-galactosidase.
The structural gene lacZ codes for the enzyme β-galactosidase, which breaks down lactose into glucose and galactose. Hence, this cannot happen if the gene is mutated. The gene lacA codes for β-galactoside transacetylase, which transfers an acetyl group from acetyl CoA to lactose. The gene lacY codes for the enzyme lactose permease, which helps the lactose molecules enter the bacterial cells from the surrounding medium.