Step 1: Understanding the Concept
An antibody such as IgG is a Y-shaped molecule of two heavy and two light polypeptide chains.
Step 2: Structure of the chains
Each chain has a variable region at one end and a constant region for the rest of its length.
Step 3: Antigen binding site
The variable regions of the light chain and heavy chain come together at the tip of each arm and form the antigen binding site.
Final Answer:
The antigen binding site is formed by the variable regions of both light and heavy chains.
\[ \boxed{\text{(C) }\text{variable regions of both light and heavy chains}} \]