The type of selection occurring in the case of the peppered moth populations, where light and dark moths are favored in different environments, is disruptive selection. This is because disruptive selection occurs when individuals at both extremes of a trait distribution are favored over the intermediate forms.
Thus, the distribution curve for peppered moths would show two peaks at the extremes of the graph with a dip in the middle. This reflects the selection for both light and dark moths in their respective environments, leading to a bimodal distribution.
So, the correct answer is: disruptive selection; two peaks at the extremes of the graph with a dip in the middle.