All lawyers practicing in the state of Erewhon must be members of the State Bar Association, by order of the state supreme court. Several state officials serve on the Bar Association's Board of Bar Governors. The Board of Bar Governors authorizes the payment of dues for two staff members to the Cosmopolitan Club, a private dining club licensed to sell alcoholic beverages. The Cosmopolitan Club is frequented by affluent businessmen and professionals and by legislators. It is generally known that the purpose of the membership of the Bar Association staff is to enable them to go where members of the "elite" meet and to lobby for legislation in which the Bar Association is interested. The State Bar Association has numerous committees and subcommittees concerned with family law, real estate law, unauthorized practice, etc., and its recommendations often influence state policy. Some committee meetings are held at the Cosmopolitan Club. The club is known to have rules which restrict membership by race, religion, and sex. Plaintiffs, husband and wife, who are members of the Erewhon Bar Association, petitioned the Board of Bar Governors to adopt a resolution prohibiting the payment of club dues to and the holding of meetings of the Bar Association or its committees at places which discriminate on the basis of race, religion, or sex. After substantial public discussion, the Board of Bar Governors, by a close vote, failed to pass such a resolution. These events received extensive coverage in the local newspapers. Plaintiffs have brought an action in federal court seeking an injunction against such payments and the holding of meetings in such places as the Cosmopolitan Club."Which of the following actions should a federal district court take with respect to jurisdiction?
Hear the case on the merits, because a federal claim is presented.  Hear the case on the merits, because the expenditure of state funds in support of segregation is forbidden by the Fifth Amendment.  Abstain from jurisdiction, because the constitutional issue should be litigated first in a state court.  Dismiss the case for lack of jurisdiction, because the issue of Bar Association activities is solely within the domain of state law