Select the option that can replace the highlighted part of the sentence grammatically and contextually correctly. If no replacement is required, select “No Replacement”. She is believing that he will return soon.

To determine the correct replacement for the highlighted part of the sentence, we need to analyze the verb "believe".

1. Understand Stative Verbs:
In English, certain verbs describe states rather than dynamic actions. These are known as stative verbs. Examples include verbs of mental states (such as believe, know, think, understand) and emotions (such as love, hate).

2. Grammar Rule for Stative Verbs:
Stative verbs are generally not used in the continuous/progressive tense (e.g., "is believing") when they express a state of mind or opinion. Instead, they should be used in the simple present tense to indicate a current state or belief.

3. Applying the Rule:
In the sentence "She is believing that he will return soon", the verb refers to a state of belief. Therefore, the present continuous form "is believing" is grammatically incorrect. It must be replaced by the simple present tense third-person singular form, which is "believes".

4. Resulting Sentence:
"She believes that he will return soon." This is grammatically correct and contextually appropriate.

Therefore, the correct option to replace the highlighted part is believes.