The correct response is:
Energy was transferred from the hot water to the nail through conduction, causing the molecules in the nail to move faster.
This explanation is appropriate because conduction is the primary method of heat transfer between solids (like the metal nail) and liquids (like the hot water). When the hot water comes into contact with the nail, thermal energy is transferred directly through the collisions of molecules, causing the temperature of the nail to rise and the molecules within it to move faster.