Step 1: Actinomycin D (dactinomycin) is an anticancer antibiotic obtained from microorganisms. This group also includes doxorubicin, daunorubicin, bleomycin, mitomycin and mitoxantrone.
Step 2: Actinomycin D works by intercalating between the two strands of the DNA double helix, specifically binding to guanine-cytosine base pairs. By wedging into the DNA, it interferes with the template function of DNA.
Step 3: This intercalation blocks the movement of RNA polymerase along the DNA, so transcription (DNA-dependent RNA synthesis) is inhibited. Hence the correct answer is that it inhibits DNA-dependent RNA synthesis.
Step 4: It does not activate transcription, nor does it act on RNA-dependent DNA synthesis (reverse transcription), so options b, c and d are wrong. Note that most antitumour antibiotics are cell-cycle non-specific except bleomycin, which acts in the G2 phase.