Refer to the following figure of the ACL configured on a router.

In the ACL (Access Control List) configuration:

Rule 5: Permits traffic from 192.168.1.1.

Rule 10: Denies traffic from 192.168.1.1.

Since ACLs are processed in sequential order, the first matching rule is applied.

Option A (Incorrect): The first rule (permit) is matched before the deny rule.

Option B (Incorrect): 192.168.1.254 is not listed in the ACL, so it does not match any rule.

Option C (Correct): 192.168.1.1 matches the first permit rule (Rule 5), so it is allowed.

Option D (Incorrect): 192.168.1.254 is not mentioned in the ACL rules, so it does not match the permit rule.

Thus, the correct answer is C.