Take another look at the item:

When Kate saw the grayish worm on the dissection tray. (A) She folded her arms (B) and refused to pick up the scalpel (C) even though she would earn a zero in lab.

You wanted to do this:

When Kate saw the grayish worm on the dissection tray. She folded her arms. And refused to pick up the scalpel even though she would earn a zero in lab.

Putting a period after arms will make and refused to pick up the scalpel ... a lonely verb fragment. You need no punctuation between arms and and.

You might want to review the rules.

Go back to the sentence to try again.

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