Question 701 Rules of the Road

The correct answer is C) A vessel engaged in diving operations. According to the International and Inland Navigation Rules, a vessel engaged in diving operations is required to display three all-round lights in a vertical line, with the top and bottom lights being red and the middle light being white. This distinctive lighting configuration helps to identify the vessel's activity and allows other vessels to take appropriate precautions when navigating in the vicinity. The other answer choices are incorrect because a pilot vessel displays different lighting configurations, and a vessel trawling does not display the specific three-light vertical arrangement.