Final answer:
Cobalt-60 undergoes beta decay, which is classified as natural transmutation because it involves the natural transformation of the cobalt nucleus into a different element, nickel.
Step-by-step explanation:
The type of nuclear reaction in which cobalt-60 undergoes is known as beta decay. During this process, cobalt-60 decays by emitting an electron (or beta particle) and transforms into nickel-60, accompanied by the emission of gamma radiation. This transformation is classified as natural transmutation, because it involves a change in the nucleus of a single atom of cobalt-60 into a different element (nickel) naturally over time. Since cobalt-60 is a synthetic radioisotope produced by neutron activation, the initial creation of cobalt-60 can be considered artificial transmutation, but the subsequent decay into nickel-60 is a natural process.
Therefore, the correct answer to this question is (1) natural transmutation.