Deriving indifference curves
The Utility function here is the average score that Polly gets i.e.

$U(x_2,x_3)=\frac{max\{x_2,x_3,60\}+max^2\{x_2,x_3,60\}}{2}\\$

Where: $max^2\{.\}$ stands for second highest number.
Now this utility function can be rewritten as:

$U(x_2,x_3)= \begin{cases}\frac{x_2+x_3}{2}, &amp; \text{ if } x_2,x_3\geq 60,\\ \frac{60+x_3}{2}, &amp; \text{ if } x_2&lt;60, x_3&gt;x_2,\\ \frac{60+x_2}{2}, &amp; \text{ if } x_3&lt;60,x_3&lt;x_2,\\ \frac{60+k}{2}, &amp; \text{ if } k&lt;60,x_3=x_2=k.\\ 
\end{cases}$

Plotting its level curve i.e. the IC for utility level $c$ would be a horizontal line from point $(0,2c-60)$ to $(60,2c-60)$, a vertical line from point $(2c-60,0)$ to $(60,2c-60)$ and a line from $(60,2c-60)$ to $(2c-60,60)$.

So if $(x_2,x_3)=(50,70)$ option 2 satisfies the IC's description.