Racism shifts from interpersonal to institutional when:

A. discriminatory actions are between two people of the same age

B. a person considers discriminatory words to be truthful

C. discrimination is reinforced by the policies of an organization

D. parents teach their children to use discriminatory terms

Option C

Explanation:

An example of institution is an organization, so anything that is institutional comes from an organization or a cooperate body. So racism becomes institutional when a particular person of races is much considered over another person from a different race despite the fact the one less consider is better fit but because of his race, he is not considered. This is best defined as discrimination and the best answer that fit my explanation above is option C.