The condition of “capture” refers to the extreme closeness that can occur between what two entities?

The condition of 'capture' refers to the extreme closeness that can occur between AN INTEREST GROUP AND A STATE AGENCY.
Capture is a type of governmental failure that occur when a regulatory agency, which is created to monitor and regulate a particular agency on behalf of the public go ahead and form an illegal alliance with a particular interest group which dominate the industry in order to promote the interests of such group.
When capture occur, the concerns of the interest group will be prioritized over the interests of the public, in this case the society will be at the losing end.