Step 1: Understanding the Concept
Wool is mainly keratin, a protein rich in the sulphur-containing amino acid cysteine.
Step 2: Gene function
Sheep cannot make enough cysteine. The bacterial genes cysE and cysM code for enzymes of the cysteine synthesis pathway.
Step 3: Result
More cysteine allows more keratin to be made, which improves wool growth.
Final Answer:
The genes increase the formation of keratin protein.
\[ \boxed{\text{(D) }\text{increasing formation of keratin protein.}} \]