Final answer:
Dominance involves alleles at the same genetic locus with one allele masking another, whereas epistasis refers to an interaction where a gene at one locus masks or alters expression at another locus, with option 3 being correct.
Step-by-step explanation:
The difference between dominance and epistasis lies in the interaction of genes and their loci. Dominance is a relationship between alleles at the same locus, where the dominant allele masks the expression of a recessive allele.
On the other hand, epistasis involves an allele at one locus masking or altering the expression of alleles at a different locus. A classic example of epistasis is the pigmentation in mice, where one gene is necessary for pigment production and can mask the expression of another gene that determines the type of pigment.
An accurate summary of these concepts would be that epistasis masks genes at different loci (option 3). This means that one gene's expression can interfere with or change the expression of another gene at a different location on the genome.