Well, let's see, the italicized word is "produced" and we're looking for a context clue. Ah, here it is! The word "scalding" gives us a clue about the meaning of "produced" because scalding water usually means extremely hot water, which would cause steam to be produced. So, the answer is A) produced.
The word in the sentence that is a context clue for the meaning of the italicized word is "scalding".