Currently, the city of Grimchester is liable for any injury incurred

Ans: (C) IMO
As per the stem, Govt is liable for any injury occured due to the bad sidewalk. but principal says : Govt is to make liable for the injuries if govt new about the perticular area/damage which can cause injury and did nothing about. Now out of the five we need to find one option in which it is stated that injury happened because of damaged sidewalk but govt either did not know about that damaged area or couldn't do anything before injury happened.

(A) A person is injured after tripping on a badly uneven city sidewalk, and the city administration had been repeatedly informed of the need to repair the sidewalk for several years. (Injury reason = sidewalk, Govt was infomred several years: Not the case we are looking for)

(B) A person is injured after tripping over a shopping bag that someone had left lying in the middle of the sidewalk. (Reason of injury is not sidewalk; Not the case again)

(C) A person is injured after stepping in a large hole in a city sidewalk, and the city administration had first learned of the need to repair that sidewalk minutes before. (Reason of injury = sidewalk, Govt just received the information first time about this and that too minutes ago so injury happened even before Govt could do anything so as per principal Govt. Can not not blamed: atleast not yet) CORRECT

(D) A person who is heavily intoxicated is injured after falling on a perfectly even city sidewalk with no visible defects. (Reason of injury is = Intoxication, Not the case we are looking for)

(E) A person riding a bicycle on a city sidewalk is injured after swerving to avoid a pedestrian who had walked in front of the bicycle without looking. (Again: Injury is not due to damaged or uneven Sidewalk so not the case we are looking for.)