Final answer:
Kenny is in the stage of parallel play where he is actively engaging with his toy while being aware of Nancy who is building a tower with blocks next to him. In this stage, children play near each other but do not interact directly.
Step-by-step explanation:
Kenny is in the stage of Parallel play where he is actively engaging with his toy while being aware of Nancy who is building a tower with blocks next to him. In this stage, children play near each other but do not interact directly. They may imitate each other's actions but do not engage in cooperative play or interact socially.