Early in the Year, Marion Was in an Automobile Accident

Early in the year, Marion was in an automobile accident during the course of his employment. As a result of the physical injuries he sustained, he received the following payments during the year: ​
What is the amount that Marion must include in gross income for the current year?

A) $25,000.
B) $15,000.
C) $12,500.
D) $10,000.
E) $0.