ANS:C - liquid dispersed in gas.

Fog is an example of a colloidal system where liquid is dispersed in gas. Fog consists of small droplets of water suspended in the air. These droplets are small enough to be dispersed throughout the gas phase but large enough to scatter light, resulting in the characteristic appearance of fog. Therefore, fog is an example of a colloidal system where liquid (water) is dispersed in gas (air).