Final answer:
An XY mouse with an inactivated SRY gene is expected to develop female anatomic features, as the SRY gene is crucial for male sex characteristic development.
Step-by-step explanation:
If you engineer an XY mouse in which the SRY gene is inactivated, the mouse is expected to develop female anatomic features because the SRY gene, located on the Y chromosome, is responsible for initiating the chain of events that lead to the development of male sexual characteristics. Without the activation of the SRY gene, which produces the testis-determining SRY protein, the undifferentiated gonadal tissues are expected to develop into ovaries instead of testes, following the default pathway of sexual development. Therefore, a nonfunctional SRY gene in an XY individual typically leads to the development of female anatomical features.