Choose the answer that corrects the sentence below

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After a heavy downpour some residents had to contend with knee deep water in their basements.
After a heavy downpour, some residents had to contend with knee-deep water in their basements.
After a heavy downpour, some residents had to contend with knee-deep-water in their basements.
No correction is needed.

After a heavy downpour, some residents had to contend with knee-deep water in their basements.