Yeast is used in the production of:

The correct answer is Option (3) → Bread and beer

Yeast is a fungus. The yeast used in homes and industry is Saccharomyces cerevisiae. It ferments sugars and gives out carbon dioxide and ethanol. The same yeast is called baker’s yeast when used for bread and brewer’s yeast when used for drinks.

Option (1) Citric acid and lactic acid — Incorrect. Citric acid is made by the fungus Aspergillus niger, and lactic acid by the bacterium Lactobacillus. Yeast is used for ethanol, not for these acids.

Option (2) Lipase and pectinase — Incorrect. Lipases and pectinases are enzymes made by microbes. Lipases are used in detergents to remove oily stains, and pectinases clear bottled fruit juices. The book does not link them with yeast.

Option (3) Bread and beer — Correct. Baker’s yeast ferments bread dough, and the carbon dioxide it releases makes the dough rise. The same yeast ferments malted cereals to make beer, which is produced without distillation.

Option (4) Cheese and lipase — Incorrect. Cheese is made with bacteria and fungi, for example Propionibacterium sharmanii for Swiss cheese. Lipase is an enzyme, not a product of yeast fermentation.

NCERT Extract:
Microbes in Household Products – “… The dough, which is used for making foods such as dosa and idli is also fermented by bacteria. The puffed-up appearance of dough is due to the production of CO₂ gas. … Similarly the dough, which is used for making bread, is fermented using baker’s yeast (Saccharomyces cerevisiae).”
Fermented Beverages – “Microbes especially yeasts have been used from time immemorial for the production of beverages like wine, beer, whisky, brandy or rum. For this purpose the same yeast Saccharomyces cerevisiae used for bread-making and commonly called brewer’s yeast, is used for fermenting malted cereals and fruit juices, to produce ethanol.”