The most appropriate scoring response would be:
The student is correct because as water molecules in steam slow down to form water droplets, they release energy to the surroundings as heat, so it is exothermic.
This response accurately reflects the nature of condensation, indicating that steam (which has high energy) loses energy as it condenses into liquid water (where the molecules are more ordered and have lower energy), releasing heat in the process, making the change exothermic. All other responses misunderstand the process of condensation and label it incorrectly as endothermic. Therefore, the student should receive full credit for their correct assertion regarding the energy change during condensation.