Final answer:
In E. coli, template and newly synthesized DNA strands are distinguished based on methylation patterns. The parental DNA strand is methylated, while the newly synthesized daughter strand is not. Proteins Muts, MutL, and MutH are involved in the mismatch repair process.
Step-by-step explanation:
In E. coli, the mismatch repair mechanism distinguishes between template and newly synthesized DNA strands based on methylation patterns. The parental DNA strand is methylated, while the newly synthesized daughter strand is not. It takes some time for the new strand to be methylated. Proteins Muts, MutL, and MutH bind to the hemimethylated site where the incorrect nucleotide is found. MutH cuts the non-methylated strand (the new strand), and the gap formed is then filled in by DNA pol III and ligase.