My view is as follows (though the question isn't really about mathematics at all - it's more about presentation!):
Which of the following best describes the graph?
1. It will not be spread out horizontally across the entire coordinate plane because in Step 4, Nancy selected an incorrect scale on the axis. This is true (though I wouldn't have used the word "incorrect") but the "incorrectness" is relatively small.
2. It will not be spread out vertically across the entire coordinate plane because in Step 5, Nancy selected an incorrect scale on the y-axis. This is true and the "incorrectness" is relatively large.
3. It will not be spread out horizontally across the entire coordinate plane because in Step 2, Nancy plotted time instead of temperature on the axis. This is plain nonsense!
4. It will not be spread out vertically across the entire coordinate plane because in Step 3, Nancy plotted temperature instead of time on the y-axis. This is also plain nonsense!
So, of the options on offer, I think 2. best describes the graph (but it's a really silly question!!).