The fact that they have employed so many people during the last month indicates that the company is planning to ______a.expandb.extendc.exaggerated.expect

The correct answer to fill in the blank is b. extend.

Explanation:

1. The phrase "the company is planning to" suggests that the action will involve growth, increase, or continuation.
2. Expand often relates to increasing the size or volume of something, but in the context of employing more people, "extend" fits better, as it suggests prolongation or an outreach beyond current capacities.
3. Exaggerated is not relevant since it carries a negative connotation, implying overstating rather than actual planning.
4. Expect doesn't fit grammatically in this context since it would require a different construction (such as "the company expects to...").

In summary, the employment of many people indicates that the company wants to extend its operations or services.