GMAT Sentence Correction (SC) | Re: [u]In an America steeped in romanticism, cemeteries were laid out[/u]

Please note the difference between the two different verbs:

lay: to put down and set in position ( I lay the babies in the cot)
lie: to be in horizontal resting position( The babies lie in the cot)

The declination (simple present, simple past, past participle) of the above verbs are as follows:
1. lay---- laid ------ laid
2. lie------ lay ------ lain

Now, in option C the usage is wrong: "cemeteries laid (simple past of the first verb above)..."