storage cost and futures

Please refer to V5 EOC R38 Q2A. Can someone please explain this question to me. Thanks

It’s just asking you whether the price on March 05 at 3.075 makes sense based on a cash-and-carry trade entered on Dec 2004. So 3.00*e^(0.06*0.25)] + 0.03 = 3.075 So it makes sense.