The correct answer is option (B):
modernize
The correct answer is "modernize". The word "update" implies bringing something to a more current or advanced state. Modernizing something is precisely that: making it more up-to-date, incorporating new features, or changing it to fit current standards.
Let's look at why the other options are less suitable:
* "Postpone" means to delay something, which is unrelated to the meaning of "update."
* "Lapse" refers to something ceasing to be valid or effective, again not related to updating.
* "Restore" means to bring something back to its original state or condition, which is the opposite of an update which would bring it forward.