Which process produces an understanding of the gap between the current state and future state...

Comprehensive and Detailed Explanation From Exact Extract:

“Identify the Programme” is the process where the current and future state are initially examined. This helps define the case for change before planning delivery or structuring the programme.

MSP Foundation, 5th Edition:

“This process creates an understanding of the gap between the current and future states and whether there is a case to proceed.”

Thus, C is correct.

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