Final answer:
The term 'licit' means lawful, which can be used to describe actions that are permitted by law, in contrast with 'illicit' which denotes something that is unlawful. So, the correct answer is option b.
Step-by-step explanation:
The word licit most nearly means lawful. This is distinguished from the word illicit, which means 'unlawful' or not permitted by law. An example of licit used in a sentence could be: 'The company's operations were found to be entirely licit by the regulatory committee.' Conversely, 'illicit' can be illustrated in a sentence like: 'His claims elicited a response from the mayor about the effort to stop demand for illicit drugs.' So, the correct answer is option b.