Final answer:
The correct interpretation of the inequality 2 1/2d < -40 is that the current depth of the hole is deeper than 16 feet below ground level (option B).
Step-by-step explanation:
The inequality representing the current depth of the hole is 2 1/2d < -40. To solve this inequality for the current depth d, we first convert the mixed number to an improper fraction, which gives us 5/2d < -40. We then multiply both sides of the inequality by the reciprocal of 5/2, which is 2/5, to isolate d.
This step gives us d < -16. Since depth below ground level is a positive number, the inequality indicates that the current depth is greater than 16 feet, but since we're dealing with negative values to represent depth below ground, the option B is the correct interpretation.