DAC Foundation awarded Kent $$75,000$ in recognition of lifelong literary achievement. Kent was not required to render future services as a condition to receive the $$75,000.$ What condition$($s$)$ must have been met for the award to be excluded from Kent's gross income?

I.

Kent was selected for the award by DAC without any action on Kent's part.

II$.$

Pursuant to Kent's designation, DAC paid the amount of the award either to a governmental unit or to a charitable organization.

A$.$

I only.

B$.$

II only.

C$.$

Both I and II$.$

D$.$

Neither I nor II$.$