I must combine the following sentences in the most effective way. Is my answer correct?

1. Walter loved animals.
2. He especially loved watching them in the forest near his Missouri home.

My answer: Walter loved animals, especially watching them in the forest near his Missouri home.

Yes, your sentence is correct. A better way, though, is:

Walter loved animals, and he especially enjoyed watching them in the forest near his Missouri home.

Your answer is correct! You have effectively combined the two sentences. To combine these sentences, you can use a comma before the word "especially" to show that the second statement further emphasizes the first statement. By doing so, you have made the sentence more concise and clear. Well done!