This event would have a huge impact on those hiding in the annex.
They are hiding in Holland, so a British invasion would directly impact them. While they'd welcome the British removing the Germans, they would have to contend with Germany defending their territory first.
To that end, the Germans treated to flood Holland. If so, the members of the annex would have to decide whether to stay or flee. Either one could be deadly. The Germans might also forcibly evacuate Holland. If that were the case, they would again have to decide whether to continue to hide in an abandoned city or leave and risk being caught by the Germans.
Ultimately, they decide that it would be best to remain in hiding.
This might be the case due to the lack of beauty they possess. Bayous and swamps typically are dirty, and are filled with insects. Many people would find that as a low standard of beauty.
All of your answers are correct.
Subject: project manager
verb: looked