Final answer:
The ground for the court to decline Carlo's petition is that Title VII permits religious institutions to discriminate when performing their activities.
Step-by-step explanation:
The ground for the court to decline Carlo's petition is option D. Title VII permits religious institutions and associations to discriminate when performing their activities.
Title VII of the Civil Rights Act of 1964 prohibits employment discrimination based on race, color, religion, sex, or national origin. However, it also includes an exception that permits religious institutions to discriminate in their hiring practices for positions that involve religious teaching or worship. This exception allows religious organizations, such as synagogues, to prioritize appointing individuals from their own faith or religion.