Step 1: Understanding the Concept:
The lac operon in Escherichia coli regulates the transcription of genes involved in lactose metabolism, including $\beta$-galactosidase ($\text{LacZ}$), which hydrolyzes lactose into glucose and galactose.
Step 2: Detailed Explanation:
- Under default conditions when lactose is absent, the lac repressor binds to the operator, blocking transcription of the operon.
- When E. coli is grown in a medium containing lactose as the carbon source (and lacking glucose):
1. Lactose enters the cell and is converted into allolactose, which acts as an inducer.
2. Allolactose binds to the lac repressor, causing a conformational change that prevents it from binding to the operator.
3. This allows RNA polymerase to transcribe the operon, leading to the synthesis of $\beta$-galactosidase.
- If glucose is present (Option A), catabolite repression occurs. This lowers cyclic AMP (cAMP) levels and prevents transcription of the operon even if lactose is present.
Step 3: Final Answer:
Growing the cells in a medium containing lactose as the carbon source induces $\beta$-galactosidase synthesis.