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A statute in a particular state provided state monetary grants to private dance, theater, and opera groups located in that state. The statute required recipients of such grants to use the granted monies for the acquisition, construction, and maintenance of appropriate facilities for the public performance of their performing arts. The last section of the statute conditioned the award of each such grant on the recipient's agreement to refrain from all kinds of political lobbying calculated to secure additional tax support for the performing arts.
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A is incorrect. The state action does not impair the flow of interstate commerce since it does not restrict a commercial activity so much as a political activity.
B is incorrect. No existing contract is being impaired by the statute.
C is incorrect. The Fifth Amendment applies only to the federal government, not the states.