What conclusion about the bacteria domain could be made from the phylogenetic tree below?

plants and animals evolved from the bacteria domain.
bacteria and eukarya are more similar than archaea and eukarya.
eukarya has similar evolutionary traits to archaea.
eukarya and bacteria developed on the same evolutionary line.

Answer: C. Eukarya has similar evolutionary traits to Archaea.

Archaea and Eukarya have genes and metabolic pathways that are more closely related to each other than each of these with the Bacteria domain.  

The correct answer is Eukarya has similar evolutionary traits to Archaea.

Explanation:

The six kingdom classification by Carl Woese divided the organisms into three domains which are Bacteria, Archaea, and Eukarya. the archaea and Eubacteria are micro-organisms while plants, animals, and microorganisms such as fungi and protists under Eukarya.

The Eukaryotes are more closely related to the Archaea than bacteria as:

1. Transcription - they both use same TATA-binding proteins-TFIIB and elongation factors.

2. Translation- First amino acid during protein synthesis is the same in both the organisms which is methionine.

4.  Histones - same histones are involved in the packaging of DNA.  

5. Sensitivity to antibiotics- both are insensitive to antibiotics.

Thus, Eukarya has similar evolutionary traits to Archaea is the correct answer.