1. **State the problem:** Puan Amy owns a house valued at RM350000. The fire insurance covers 75% of the insurable value with a deductible of RM3000. We need to find the compensation if the house is a total loss. 2. **Calculate the insured amount:** The insurance covers 75% of RM350000. $$\text{Insured amount} = 350000 \times \frac{75}{100} = 262500$$ 3. **Calculate the compensation after deductible:** Since the loss is total, compensation is the insured amount minus the deductible. $$\text{Compensation} = 262500 - 3000 = 259500$$ 4. **Conclusion:** Puan Amy will receive RM259500 as compensation. **Final answer:** RM259500 (Option B)