Another new factory has been built near -------used to be a

选 A.
what used to be a village 是介词 near 的宾语从句,what 在宾语从句中做主语.
而 near what used to be a village 是介词短语作地点状语.
用 where,则宾语从句无主语.
这个句子里没有什么定语从句!