Final answer:
The transcription of the SRG1 gene represses SER3 transcription by hindering the binding of transcription factors to the SER3 promoter, blocking its initiation.
Step-by-step explanation:
The transcription of the SRG1 gene represses the transcription of the adjacent SER3 gene in yeast. When the SRG1 gene is transcribed, its transcriptional machinery overlies the SER3 promoter region. Given the options provided, the most likely explanation for how SRG1 transcription represses SER3 transcription is that the transcription machinery moving along the SRG1 gene interferes with the simultaneous binding of transcription factors at the SER3 promoter, thereby blocking the initiation of SER3 transcription. This is supported by the fact that mutations in the SRG1 promoter, which would likely prevent or reduce the transcription of SRG1, alleviate the repression on SER3. This indicates that the act of transcription through the SER3 promoter region, rather than a protein product of SRG1, is responsible for the repression.