Final answer:
A composite transposon consists of chromosomal DNA flanked by two IS elements with inverted terminal repeats, which can include genes like those for antibiotic resistance (option c). Transposition of such elements can spread these genes within the cell.
Step-by-step explanation:
The structure of a composite transposon, also known as a Tn element, involves chromosomal DNA flanked by two Insertion Sequences (IS elements) of the same type, as stated in option b. These IS elements contain inverted terminal repeats, and the DNA that lies between the IS elements can include genes, such as those for antibiotic resistance. When this composite transposon transposes, it can carry and spread these genes within the cell. Notably, apart from the inverted repeats at the ends of the IS elements, the transposition insertion process in host DNA creates direct repeat sequences of host DNA at the site of insertion.
Hence, the answer is option c.