The right answer is B.
The operator is the segment of DNA to which a chemical signal (a regulatory molecule) binds. It can be either a repressor signal or a transcription activating signal (DNA operator) or translation (RNA operator) of the genes of the operon.
In the case of loperon lactose, the operator is located downstream of the promoter so that it can regulate the trancription. In the case of this experiment, the promoter has been removed from the opterator, and in this case, can no longer regulate the transcription, and therefore the synthesis will be continuous (unregulated).
Another interesting fact is that beta galactosidase will not be transcribed since it will be positioned upstream of the promoter (so the E response is false).