For this question, you provide some kind of text. This could be a phrase, a sentence, a paragraph, whatever kind of text works for the topic.
Canvas will create empty box indicators in place of key words to test the student's understanding.
You must type the full text. You indicate to Canvas where you want the blanks to show by surrounding the word with back-ticks. Those are backward slanting single-quotation marks, like this `sample`. On most keyboards that keystroke is found on the same key as the tilde.
Be aware that Canvas can only accept exactly the word you indicate as the correct answer. For example, if a student misspells a word, it won't be accepted. Or if a student types a plural noun instead of a singular noun, it won't be accepted. This is actually a tricky question type. You may find yourself having to manually review and score these questions.