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A
The first President
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B
Washington, D.C., a place
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C
A state park
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D
An ocean
Why this is the answer
In the sentence 'The President lives in Washington,' the word 'Washington' is used as a PLACE — referring to Washington, D.C., where the President resides and the federal government is located. On the USCIS reading vocabulary list, Washington appears as both a person (George Washington) and a place (Washington, D.C.), and the sentence's meaning tells you which is intended. Because the sentence is about where the President lives, the place meaning fits. Distinguishing the place from the person by context is a key reading-comprehension skill the test measures.
Source: USCIS Reading Vocabulary — Places: Washington