Final answer:
The repression of SER3 transcription by SRG1 is due to the interference of SRG1 transcription machinery with the SER3 promoter, preventing transcription factors from initiating SER3 transcription.
Step-by-step explanation:
In the case of the yeast SER3 gene regulation, the repression of SER3 transcription is due to the transcriptional activity at the non-protein-coding gene SRG1. When RNA polymerase binds to the SRG1 promoter and transcribes SRG1, it overlaps with the adjacent SER3 promoter. This overlapping transcription likely hinders the binding of transcription machinery on the SER3 promoter, thereby blocking transcription factors from accessing SER3’s regulatory sequences and initiating its transcription. This phenomenon is described in statement 1), where transcription machinery on the SRG1 gene prevents binding of transcription factors on the SER3 promoter, which blocks SER3 transcription. Mutations in the SRG1 promoter that remove this repression, resulting in the activation of SER3 transcription, further support this mechanism.