This is Exercise I.6(c) of the titular book. According the Approach0, this question is new to MSE.
The Setup:
Let $G$ be a topological group and $\mathbf{B}G$ the category of continuous $G$-sets. Let $G^\delta$ be the same group $G$ with the discrete topology. So $\mathbf{B}G^\delta=\mathbf{Sets}^{{G^\delta}^{{\rm op}}}$ is a category as considered in the previous exercise. Let $i_G: \mathbf{B}G\to \mathbf{B}G^\delta$ be the inclusion functor.
(a) Prove that a $G$-set $(X,\mu:X\times G\to X)$ is in the image of $i_G$, i.e., that $\mu$ is continuous, iff for each $x\in X$ its isotropy subgroup $$I_x=\{ g\in G\mid x\cdot g=x\}$$ is an open subgroup of $G$.
Here's my question on part (a).
(b) Prove that, for a $G^\delta$-set $(X,\mu: X\times G\to X)$ as above, the set $r_G(X) = \{x \in X \mid I_x\text{ is open}\}$ is closed under the action by $G$, and that $r_G$ defines a functor $\mathbf{B}G^\delta\to \mathbf{B}G$ which is right adjoint to the inclusion functor $i_G$.
Here's my question on part (b).
The definition of a CCC I am using is as follows.
Definition: A category $\mathbf{C}$ is a cartesian closed category (CCC) if
it has all finite products (which is equivalent to saying there exists a terminal object and all binary products in $\mathbf{C}$) and
all $\mathbf{C}$-objects are exponentiable.
The Question:
Observe that $i_G$ preserves products, and conclude from (b) that $\mathbf{B}G$ is cartesian closed since $\mathbf{B}G^\delta$ is. [Hint: define the exponential $Y^X$ in $\mathbf{B}G$ by $r_G(i_G(Y)^{i_G(X)})$.]
Thoughts:
I think I have to make use of the second part of Exercise I.4 but I'm not sure how to implement it.
I have a rough idea of how to conclude that $i_G$ preserves products, and that is to show that it preserves both the terminal object and all binary products. As such, perhaps I can reason as I did for the second part of Exercise I.4, with $F=i_G$. But I doubt this.
Please help :)