Final answer:
Flanking direct repeats are created in transposition through the process of cut and paste. The transposon is excised from its original location and inserted into a new location in the genome. This results in the creation of direct repeats flanking the transposon.
Step-by-step explanation:
In transposition, flanking direct repeats are created through a process called cut and paste transposition. During this process, the transposon is excised from its original location and inserted into a new location in the genome. After the transposon is inserted, DNA polymerase fills in the gaps left behind, and DNA ligase seals the filled-in strands, resulting in the creation of direct repeats flanking the transposon.