For the compound shown, which description of the substituent and its effect on electrophilic substitution is correct?

The compound is anisole. The oxygen lone pair is donated into the ring (+M), outweighing its inductive withdrawal, so the ring is more reactive than benzene. The charge builds up at the ortho and para positions, so the $\mathrm{OCH}{}_3$ group is activating and ortho/para-directing.