If we are told to hold SE of the GPS fix on the 340 course, the correct entry would be:

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The question asks which entry is correct when instructed to hold SE of the GPS fix on the 340 course.
Option 1: Teardrop. A teardrop entry is used when you are holding to a waypoint from a fix behind you and you plan an intercept on a course to the holding fix, typically involving a slight course reversal before turning outbound. Since the instruction specifies holding SE of the GPS fix on a given course (340), this scenario describes a direct holding pattern relative to the GPS fix rather than a teardrop entry. Therefore, teardrop is not the appropriate entry for holding on a specific course to the GPS fix.
Option 2: Direct. A direct entry means you proceed directly toward the GPS fix on the prescribed course without performing a teardrop pattern or outbound/retrace maneuver. When told to hold SE of the GPS fix on a particular course (340), the most straightforward and correct method is to establish a hold directly on that course with the specified waypoint, which corresponds to a Direct entry.
In terms of navigation concepts, the teardrop pattern is primarily used for intercepting and then holding at a fix when coming from a non-realignment leg or when maneuvering from a turn to align with the inbound/outbound course. The Direct entry aligns with instruction to hold SE of the GPS fix on the 340 course, keeping the aircraft on the specified inbound/outbound heading while remaining near the fix. Thus, the direct option correctly matches the described holding procedure.
Additional nuance: the display and labels (GPS, SE, course 340) imply a simple hold on a fixed inbound course rather than an offset procedure, reinforcing Direct as the appropriate selection.

AS 221 AS 221 - Exam 2 - Requires Respondus LockDown Browser

If we are told to hold SE of the GPS fix on the 340 course, the correct entry would be:

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