It is incorrect since it does not carry any connection like WHAT.
The correct answer would be as follows: That the dress that hangs on my bed is my favorite.
Other words that can start the clauses are: Who, which, whose, what, when, where, why, whatever and that. When the sentence begins with one of those words, it will be demonstrating the substantive clause.
One time when I was doing a discussion, We were the second group to go. I waited and listened to the first groups reasoning and used that to back up my arguing. By using their information I was able to create questions for the discussion.
