Final answer:
Option A is the correct answer. The path-goal theory states that environmental factors dictate the necessary leadership behavior for the best outcomes, while subordinate factors determine the interpretation of the leader's behavior.
Step-by-step explanation:
According to the path-goal theory, environmental contingency factors determine the type of leader behavior required in order to maximize outcomes; subordinate contingency factors determine how the leader behavior is interpreted. Environmental factors may include the societal norms, organizational culture, and the nature of tasks being performed, which can dictate the style of leadership needed. On the other hand, subordinate factors focus on the characteristics of the employees such as their need for autonomy, need for leadership, and openness to growth, influencing how they perceive and react to their leader's behavior.