They're learning all about the 5cm rule (I'm hoping they can explain it to you), using the question to help them begin their response and what it means to state our purpose for writing (required for question 6).
They're also learning that their teacher does her best proofreading after she photocopies and distributes the test.
Question four was a whoops. There's no possible answer for it in the story itself. I stuck a label on the back of each child's test with a question on it that better reflects the types of questions students can anticipate on their weekly tests.
I also think this supports my long-standing claim that Tim Hortons needs to deliver to schools.