Final answer:
A compass needle exhibits erratic behavior when exposed to multiple magnets due to conflicting magnetic fields, leading the needle to align inconsistently.
Step-by-step explanation:
When a compass is exposed to multiple magnets, rather than indicating a stronger sense of direction, it generally exhibits erratic behavior due to the conflicting magnetic fields of the multiple magnets. If compass needles are near one pole of a magnet, they will align themselves so that the opposite pole of the needle is closest to that pole of the magnet. In the presence of multiple magnets, or magnetized nails, the magnetic fields can interfere with each other, which can cause the compass needle to become confused and behave erratically. Hence, the correct response to the student's question is that c) The needle exhibits erratic behavior when exposed to multiple magnets.