Final answer:
The correct answer is 'demolishing', as it is the action of destroying buildings, which matches the context of the statement regarding making way for parking lots.
Step-by-step explanation:
The correct answer to the statement 'We object to the policy of ____ historic old buildings to make way for unsightly parking lots.' is b) demolishing. In the context of urban development and architectural conservation, the word 'demolishing' refers to the process of tearing down or destroying buildings. This practice was often part of urban renewal efforts in the mid-20th century, where it was believed that demolishing dilapidated structures would pave the way for new development and investment. However, this sometimes led to controversial outcomes, such as the erasure of cultural heritage and community displacement. Whereas, 'preserving', 'conserving', and 'renovating' refer to various methods of maintaining or improving buildings, demolishing is the act of destroying them, which would be the intended action prior to creating parking lots.