Maggie embraced John as he ____ on the sand.

A. laid
B. lay
C. lain
D. lied

B. lay

The correct answer is "B. lay".

To determine the correct answer, we need to understand the difference between "lay" and "lied" as well as the past tense forms of these verbs.

"Lay" is the past tense of "lie" and means to recline or be in a horizontal position. For example, "John lay on the sand" is the correct sentence using the past tense of "lie."

"Lied" is the past tense of "lie" as a verb meaning to intentionally deceive or tell a falsehood. However, in this context, we are referring to the physical act of reclining or being in a horizontal position, so "lied" is not the correct answer.

The correct answer is B. "lay"