Answer:
Compound sentence.
Step-by-step explanation:
A compound sentence is a sentence that contains two independent clauses that are joined by a coordinating conjunction. They can also be joined by a conjunctive adverb or a semicolon, or in this case, a colon.
A colon is also used to punctuate sentences when the first part of the sentence is related to the second and the second explains or clarifies the first. This means that the second sentence is a follow-up or gives an example to support the first sentence.
In the given sentence, there are two independent clauses- "Alice Munro published her first collection of short stories in 1968" and "the title of that collection is Dance of the Happy Shades". This evidently rules out simple(has only one independent clause), complex(contains one independent and one dependent clause), and compound sentence (two independent clauses and a dependent clause) structure.
Thus, the correct answer is a compound sentence.