Answer:
Chloe cut the wrong amount of fabric,
Explanation:
According to the problem, Chloe needs 0.8 yards of fabric to make a skirt. However, they ask her to cut an extra 12%. To find the right answer, we have to calculate the 12% of 0.8, and then sum it with the standard yards for the skirt. That is

This means that Chloe cut the wrong amount of fabric, because she only cut the 12% without adding the initial 0.8 yards.
The right amount of fabric is 0.896 yards.