Answer:
The period should be placed inside the quotation marks. The correct way would be: Talbera replied, "I cannot drive through the mud."
Step-by-step explanation:
In American English, the periods and commas should always be placed inside the quotation marks. You can sometimes see that other texts written in English have the commas outside the quotation marks, but that is because it is British English; for them it is okay to put the commas / periods inside or outside the quotation marks. But, in America, we put them inside.