Explanation: McGregor's theories divide human nature into two categories. Theory Y people have a positive outlook, welcome responsibility, want to work hard and provide their own direction. Theory X people, on the other hand, are driven by fear, lack ambition, avoid responsibility, and need to be coerced or forced to work hard. This makes "Theory X" the correct response and eliminates "Theory Y." The remaining two choices can be ruled out because they are not recognized theories of human nature.