In question management, category selection fields do escape < > and & in optgroup labels

Steps to reproduce:

• Log in as manager, or at least a role which has course category creation capabilities.
• Open Course and category management course/management.php?categoryid=0.
• Click "Create new category" to create a course category under Miscellaneous called "fish & chips".
• Create new category "0 < 1" in the new "fish & chips" category.
• Create new category "2 > 1" in the new "0 < 1" category.
• Create new category 'Double " quotes' in the new "2 > 1" category.
• Create new category "Single ' quote" in the new 'Double " quotes' category.
• Create a course "question bank test course" in the new "Single ' quote" category
• Go to that course's question bank question/edit.php?courseid=XX* Select the pull down menu "Select a category"

    
What you see:
The title for the fourth entry states "Category: 2 > 1"
The title for the fifth entry states "Category: 0 < 1"
The title for the sixth entry states "Category: fish & chips"
    
What you expect:
The title for the fourth entry states "Category: 2 % gt; 1"
The title for the fifth entry states "Category: 0 & lt; 1"
The title for the sixth entry states "Category: fish & amp; chips"

This also applies for the selection when moving question ("With selected:" "move to>>").
The values are set in the select field's optgroup labels.