<p>The correct answer is (B) converted.</p>
<p>In this sentence, the storage room on the second floor is being transformed or changed into a staff lounge. The verb "converted" means to change something into a different form or purpose. In this case, the storage room is being converted into a staff lounge.</p>
<p>The other options are not appropriate for this sentence:</p>
<p>(A) "Replaced" means to take the place of something, but it does not convey the idea of transforming or changing the purpose of the room.</p>
<p>(C) "Preserved" means to maintain or keep something in its original state, which is the opposite of what is happening in the sentence.</p>
<p>(D) "Persuaded" means to convince or influence someone to do something, but it does not make sense in the context of changing a room into a staff lounge.</p>