The correct response is:
Incomplete dominance; the offspring are a mixture of each parent's phenotype.
In this scenario, the black rabbit and white rabbit produce grey offspring, which suggests that the phenotypes of the parents blend to create a new phenotype (grey), rather than one phenotype completely masking the other (which would be the case in complete dominance) or both being expressed simultaneously (codominance). Therefore, this is an example of incomplete dominance.