Answer:
D) Yes, because the nephew holds a fee simple defeasible.
Step-by-step explanation:
Since the nephew holds a simple fee defeasible, he can use Blackacre as he pleases as long as he is alive. Since his former wife (Alice) died, then after his death Blackacre will pass to the county hospital, but as long as he is still alive, he can extract gold from Blackacre.