The currently selected solution is incorrect in solution and explanation. Consider: (1) There is a lot of people. (2) There are lots of people. (3) There is 1 flask of grain. (4) There are 3 flasks of grain. The subjects in sentences 1 and 2 are respectively lot and lots, not people. "People" in these two sentences is the object of the preposition, which is tied to the subject. The subjects of each sentence are singular and plural, respectively, hence the verb is conjugated accordingly. Sentences 3 and 4 exemplify this with a numbered subject and a singular object of the preposition. The correct answer is therefore: "There is a lot of people."