People favor their in-groups, andwhen they treat other groups unfairly, it is called: a. scapegoat theory b. out-group derogation c. social stereotyping d. the fundamental attribution error

Option 'B' is correct.

Explanation:

People favor their in-groups, and

when they treat other groups unfairly, it is called out group derogation.

Out group derogation is the condition where favouritism towards out groups is absent.

There is a discrimination between in groups and out groups because of which favouritism is only for in groups and absent for out groups.

Hence, option ' B' is correct.