Answer:
Nuestras tías viven en la ciudad.
Translation:
We have two aunts. They live in the city.
Our aunts live in the city.
Step-by-step explanation:
Possessive adjectives are used to indicate who or what possesses something. There are two forms of possessive adjectives: the short one and the long one. This exercise targets the short form.
Remember that in Spanish, the gender and the number of the subject must always match with their adjectives.
The subject is tías, which is feminine and plural. Therefore, the correct possessive adjective is nuestras. Mis (tías) could have been correct too, but the person talking is plural as well.