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The correct answer indicates that containers for oily rags must be placed in an approved metal can and covered with a lid. This requirement is primarily grounded in safety practices aimed at minimizing fire hazards associated with oily rags, which can spontaneously combust under certain conditions. Metal containers are preferred because they are less likely to catch fire compared to plastic or cardboard and provide a sturdy solution to prevent accidental spreading of flames.

Covering the container with a lid is essential to limit the amount of oxygen available to any potential ignition source, further reducing the risk of combustion. This practice is consistent with standards established by safety organizations, which emphasize the importance of proper storage for materials that pose a fire risk.

In contrast, options that suggest using plastic containers without lids, storing oily rags in open cardboard boxes, or leaving them out in the work area fail to address safety concerns adequately. These options either provide insufficient protection against fire hazards or create an environment that increases the risk of accidental ignition.