Step 1: The task is to identify how the antitumour antibiotic actinomycin D kills cancer cells.
Step 2: Actinomycin D slides flatly between adjacent base pairs of DNA, a process called intercalation, anchoring tightly at guanine-cytosine sites. This distorts the DNA template.
Step 3: With the antibiotic lodged in the helix, RNA polymerase can no longer read the DNA, so the making of RNA from a DNA template (transcription) is shut down. Thus actinomycin D inhibits DNA-dependent RNA synthesis.
Step 4: It neither stimulates transcription nor touches the RNA-to-DNA reverse transcription pathway, ruling out the other three options.
\[\boxed{Inhibits\ DNA\ dependent\ RNA\ synthesis}\]