Question on Faraday's and Lenz's Law

1. The problem statement, all variables and given/known data

http://imageshack.us/photo/my-images/16/snipu.jpg/

2. Relevant equations



3. The attempt at a solution

The magnetic field in the bar magnet is directed to the right, but weakening in magnitude because the magnet is being moved far away from the loop. So by Lenz's law, the magnetic field created by the induced current must be to the right. That eliminates B,D, and E.
But I don't understand how a force can be created on the loop. I know that the answer choice is actually C (the loop is attracted towards the magnet) but why should this be the case? Lenz's law is already accounted for, after all.

Free thanks to anyone who can provide an explanation!

 

So you are saying that the magnetic field created by the induced current acts on the current to create a magnetic force? Yes, but why should that force be directed to the left? If I'm not mistaken the forces should be directed radially inward/outward but not towards the left...