Slope staking on exam

In a recent thread this practice exam was mentioned, and I downloaded the Preview file.

https://account.ncees.org/exam-prep/437

I'm trying to figure out question 7, without having any experience doing this. I can follow the math, but have no clue how to figure out the situation.

-I'm thinking this is on raw land and the road finish grade is to be achieved, not existing. True? I don't think the road is built and now they are trying to get the ditches right.

-If this is right, it seems odd that the HI is almost 9 and a half feet above the target road elevation and even further above the existing ground at the road location. Where did they find a high spot to put the level? That made me think it was to be a cut.

-So how do you know this is in fill?

-The wording of the answer is very confusing. "The test point (road edge) is above the ground by  2.64 ft." Isn't the "test point" where you put the rod on the ground, which is below the target road elevation? "Road edge is" (not "to be") sounds like the road exists. So did I get the situation wrong from the start?

-Why would the slopes as given be flatter for fill than for cut?