To set up an inequality for this situation, we need to represent the amount Sarah spends on candy, which has a cost of $3 per item, while also accounting for her coupon.
Let \( x \) represent the number of items Sarah buys. The total amount spent on candy can be represented as \( 3x \) since each item costs $3.
Sarah will spend at most $26, so we set up the inequality:
\[ 3x \leq 26 \]
This inequality states that the total cost of the candy (3 times the number of items purchased) must be less than or equal to $26.