Final answer:
The correct process to generate the necessary output is using the Clip tool with the USA rivers as input features and the California state boundary as clip features.
Step-by-step explanation:
The correct process to generate the necessary output is option B - the Clip tool with the USA rivers as input features and the California state boundary as clip features.
The Clip tool is used to extract the features from one layer that fall within the spatial extent of another layer. In this case, the student wants to create a new feature class of rivers in California, so they need to clip the USA rivers feature class with the California state boundary.
The Union tool, which is mentioned in options A and C, is used to combine the features from multiple input layers into one output layer. It would not generate the necessary output of rivers in California.