Answer:
Since n(1-p) < 5, it is not appropriate to assume that the sampling distribution of the sample proportion is approximately normal.
Step-by-step explanation:
Binomial probability distribution:
Probability of x sucesses on n repeated trials, with p probability.
Can be approximated to the normal distribution if:
np > 5 and n(1-p) > 5
In this problem:
A random sample of 100 residents was selected, and 97 of those selected indicated that they were in favor of the proposal.
This means that 
Is it appropriate to assume that the sampling distribution of the sample proportion is approximately normal?
np = 100*0.97 = 97 > 5
n(1-p) = 100*0.03 = 3 < 5
Since n(1-p) < 5, it is not appropriate to assume that the sampling distribution of the sample proportion is approximately normal.