Audrey's method of compensation involves adjusting the numbers to make the calculation easier. She subtracted 0.10 instead of 0.07, which resulted in 5.25.
To find the final answer to the original subtraction problem (5.35 - 0.07), she needs to account for the difference in the values she used in her compensation. Since she subtracted 0.10 instead of 0.07, she subtracted an extra 0.03 (0.10 - 0.07 = 0.03).
Therefore, the final step needed to complete her work is to add 0.03 to 5.25 to correct for the compensation.
So, the correct answer is: Add 0.03.