Natalia Owns Balloon Heaven, a Popular Restaurant in Which Patrons

Natalia owns Balloon Heaven, a popular restaurant in which patrons sit in faux hot air balloons and the walls and ceiling are painted like the sky. Natalia registered her mark, which consists of the restaurant name in the basket of a rainbow-colored hot air balloon. After Natalia's success, Benji opened a restaurant called Heavenly Balloons on the other side of town. The décor of Heavenly Balloons is similarly crafted to give the patron the impression of eating in the basket of a hot air balloon, with similar tables and paintings. Benji's logo, which appeared on billboards and local advertisements, depicts a rainbow-colored hot air balloon with the restaurant's name in the balloon. Several customers have congratulated Natalia on opening a second restaurant and on the billboards appearing around town.
-Do both state and federal law protect against trademark dilution?

A) Only some states have trademark dilution laws, but there is no federal law.
B) There is a federal law, but no state law.
C) Both federal law and some states have trademark dilution laws.
D) Every state has a law against trademark dilution, but there is no federal law.
E) Every state has a law against trademark dilution and there is a federal law.