Final answer:
The correct answer is 'Sí, lo leo todos los días.'
Step-by-step explanation:
The correct answer is Sí, lo leo todos los días. This translates to Yes, I read it every day. In this case, 'el periódico' is the direct object, so it is replaced by the pronoun 'lo'. Since 'el periódico' is singular and masculine, the appropriate pronoun is 'lo'.
Learn more about The use of direct object pronouns in Spanish