Final answer:
A red blood cell in a hypotonic environment will lyse due to the influx of water causing it to swell and potentially rupture. This is because the plasma membrane cannot sufficiently expand to accommodate the extra volume of water. So the correct option is C.
Step-by-step explanation:
When a red blood cell is placed in a hypotonic environment, it will lyse. This condition occurs because the environment outside the cell has a lower concentration of solutes compared to the inside of the cell, which results in an influx of water. As water enters the cell, the red blood cell swells and can burst as the plasma membrane's capacity to expand is exceeded. In contrast, crenation occurs in a hypertonic environment where the cell shrinks due to water leaving it. Plant cells, however, can become turgid due to their cell walls, but red blood cells do not have this feature and are therefore prone to lysis in hypotonic conditions.