Step 1: Analyze the analogy.
The first pair is "Bird : Nest." This shows the relationship between an animal and the place it lives. Therefore, the second pair should also represent an animal and its dwelling place.
Step 2: Check each option.
- (A) Kennel → A house for dogs, not for bees.
- (B) Hammock → A swinging bed for humans, not an animal dwelling.
- (C) Hive → The structure where bees live and produce honey. Perfect match.
- (D) Lair → Den of a wild animal (like a lion), not bees.
Step 3: Conclusion.
Just as birds live in nests, bees live in hives. Therefore, the correct answer is Hive.
\[
\boxed{\text{Hive (C)}}
\]