Take another look at the sentence:

Bill went to the bank interview smelling of wet dog. He had __________ his one suit on the bed before going into the bathroom to shave. Dripping from the rain, Skipper, his Labrador retriever, decided the jacket made a perfect towel.

Bill put his one suit on the bed. Thus, you need a form of lay. Since the sentence has the auxiliary verb had, you need the past participle. Consult the table below or review the rules.

Layed, the answer you chose, is a spelling error.

Infinitive Definition Simple Present Simple Past Past Participle Present Participle
to lay to put something down lay(s) laid laid laying
to lie to rest or recline lie(s) lay lain lying

Go to the next sentence.

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