The correct answer is C. Institutional discrimination.
Step-by-step explanation
Discrimination is a set of human behaviors that are characterized by the rejection and harmful treatment of a person or group with particular characteristics such as sex, skin color, religion, nationality, political inclinations, among others. Additionally, discrimination can be promoted by certain individuals, by groups of people or even by institutions, in which discrimination is legitimated by certain rules or norms. According to the above, the Shady Pines Country Club is exercising institutional discrimination because it has not taken the necessary measures to modify its hereditary membership policies to include the Asian, black and Hispanic population. So, the correct answer is C. Institutional discrimination.