In IIS 7.0, the Windows Activation Process (WAS) is responsible for managing worker processes. WAS receives incoming requests from http.sys and decides which worker process should handle each request based on the application pool configuration. It also manages worker process lifecycle (starting, stopping, recycling). Option A (http.sys) is the kernel-mode driver that listens for HTTP requests but doesn't manage processes. Option C appears to be a service name fragment, not a process. Option D is not a valid IIS component.