To complete Audrey's work using compensation, she initially rounded down 0.07 to 0.10, which made the subtraction easier by calculating 5.35 - 0.10 = 5.25.
Since she wants to compensate for the fact that she subtracted a little more (0.10 instead of 0.07), she will need to add back the difference between 0.10 and 0.07, which is 0.03.
So, the final step needed is:
• Add 0.03.