The only ambiguity in this puzzle is whether to shade the boundary - that is, the name. The rubric says we 'shade an area bounded by the name' but that can be taken in two ways: as shade 'an area bounded by the name' or 'shade an area' bounded by the name.
However, we also need to treat the 'three additional items', they must be ON is shaded, so I can't see any alternative to including the name in the shading. It also makes the proportions much more sensible.
For the three extra items, it would clearly be sensible to shade the part of the cell outside the letter, since that makes more sense in context. But they cannot mark this right or wrong, surely.