Answer: The correct answer is "It has domains that are not aligned".
Step-by-step explanation:
The domains of the magnet are already aligned. The magnet attracts the iron nail. It will magnetized the iron nail as the domains of the iron nail gets aligned as long as it is in contact with magnet.
The magnetism will be induced in it when it is attracted to a nearby bar magnet.
In the presence of the magnetic field, the domains of the iron nail will get align. Iron is a ferromagnetic material. Then, it will become temporary magnet as long as it is in contact with the bar magnet.
It is given in the problem that an iron nail does not pick up paper clips as a magnet would. The iron nail is not magnetized. The domains of the iron nail are not aligned.
It can be concluded about the structure of the iron nail that It has domains that are not aligned.