The correct option is "The government was officially promoting and directing anti-Semitism".
The Nazi government was directing the abuses first, and the mass murders afterwards, against the Jews who lived in their territory. This behaviour started time before the establishment of the known as the Final Solution to the Jewish Question, which oficialy set the determination of the Nazis to extermine all Jews, by using the concentration camps.
Before that, businesses and properties of Jews had been expropriated and all Jews were isolated, crammed, and imprisoned in ghettos. One notorious example is the known as Night of Broken Glass in 1938, perpetrated by paramilitary forces (SA) and German civilians, who destroyed Jewish properties and murdered many Jewish.