The correct answer is C) The barge must be in a protected position within the tow. This is correct because a barge with independent tanks displaying a placard with alternating red and white quadrants indicates that it is carrying a flammable or combustible cargo. For safety, such a barge must be positioned in a protected location within the tow, away from potential ignition sources, to minimize the risk of an incident. The other options are incorrect - A) is wrong because the barge does not need to be operated as a lead barge, B) is incorrect as the barge should not be spotted far from the towboat, and D) is false as the cargo will not spontaneously ignite if released to the atmosphere.