Why is it proper to call the Nazi state a racial state?

Because state policies were based on supposed Aryan interests and racial purity

Option C is correct because the Nazi state defined belonging and citizenship through a racist hierarchy rather than through equal legal rights. It claimed that Germans belonging to an imagined Aryan race were biologically superior and that the state had to preserve racial purity. Laws and administrative measures excluded Jews and other targeted groups from citizenship, education, employment, marriage and public participation. The term “racial state” therefore describes the way racial classification shaped both government policy and everyday rights. Options A, B and D are inconsistent with the historical record: the regime denied equality, controlled the press and pursued exclusionary nationalism instead of opening society or borders.

This is a Class 9 History question. Chapter: Nazism and the Rise of Hitler. Topic: The Nazi Worldview.