Final answer:
During an active transformation, all points in space, including the Earth and everything else, are moved while the coordinate system remains fixed.
Step-by-step explanation:
In the context of the example you provided about a ball being dropped from a height, the correct explanation is that during an active transformation, all points in space are moved, including the Earth and everything else. However, your coordinate system remains fixed.
So if you are standing on the ground and drop a ball, an active transformation would shift all points in space upwards, including the Earth, while your coordinate system remains fixed. This means that every point in space, including the ball, would have a new position relative to your coordinate system.