The correct answer is C) 9'-08". The draft is determined by the water level in relation to the draft marks on the vessel. Since the water level is about 4 inches below the bottom of the 10-foot mark, the actual draft is 9 feet and 8 inches. The other options are incorrect because A) 10'-04" is above the water level, B) 9'-04" is 4 inches too low, and D) 10'-02" is 2 inches too high compared to the observed water level.