The problem presents a real gas situation at 350 K and 15 bar where the molar volume is 20% smaller than that for an ideal gas at the same conditions. We are asked to determine the compressibility factor (Z) and whether attractive or repulsive forces are dominant. Let us solve this step-by-step:
Given this understanding, the correct option is "Z < 1 and attractive forces are dominant." This indicates that the presence of significant attractive forces between gas molecules causes the gas to have a smaller volume than expected for an ideal gas, thereby making Z \lt 1.