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How much will Nancy's insurance policy cover following the car accident?

  1. $40,000

  2. $100,000

  3. $35,000

  4. $50,000

The correct answer is: $35,000

Nancy's insurance policy will cover up to $35,000 following the car accident. This means that if the total expenses from the accident are more than $35,000, she would have to pay the remaining amount out of pocket. Options A, B, and D are incorrect because they are either higher or lower than the actual coverage of $35,000. Option A of $40,000 is too high, while options B of $100,000 and D of $50,000 are higher than the actual coverage and may give the false impression that Nancy's policy would cover all expenses from the accident. This could lead to misunderstanding and potentially financial strain for Nancy in the event of an accident. Therefore, the correct answer is option C of $35,000.