You observe the lower limb of the Sun at a sextant altitude (hs) of 54°28.2' on 22 July. The index error is 1.5' off the arc. The height of eye is 56 feet (17.1 meters). What is the observed altitude (Ho)?

Correct Answer: Option C — 54°37.7'

Apply the Nautical Almanac corrections: hs 54°28.2' minus 1.5' (off the arc) equals 54°26.7'. Subtract dip for 17.1m (-7.3') and apply the Sun's altitude correction (refraction and semi-diameter) from the Almanac for July (+18.3'). The resulting Ho is 54°37.7', following standard Bowditch sight reduction procedures.