Step 1: Identify the pattern in the analogy.
The analogy is based on the relationship between a living creature and the place where it resides.
In other words, it connects an animal to its natural shelter or home.
Step 2: Interpret the given pair.
A bird is typically found living in a nest.
So the underlying relationship can be expressed as:
\[ \text{Creature} \longrightarrow \text{Place where it lives} \]
Using the same logic, we now need to determine where a bee lives.
Step 3: Examine the answer choices.
(A) Kennel: This is associated with dogs, not bees.
(B) Hammock: This is a type of bed used by humans.
(C) Hive: This is the natural dwelling where bees live and store honey.
(D) Lair: This usually refers to the den of large wild animals.
Step 4: Final conclusion.
Just as a bird lives in a nest, a bee lives in a:
\[ \boxed{\text{Hive}} \]