Here is the sentence:

A crumpled ten-dollar bill __________ at the bottom of the washing machine. Mike retrieved the money and drove to Tito's Taco Palace, where he bought fifteen tacos and a large root beer.

The ten-dollar bill rested at the bottom of the washing machine. Thus, you need a form of lie. Since the sentence is past tense, you need the simple past form. You chose the correct form from the table below. Good job!

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

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