I think it would be inherit. Usually when a mother dies, her children will inherit whatever is described in her will.
Answer:
Ms. Dietrich will take the company car because it's bigger than hers.
Explanation:
The sentence that is punctuated correctly is the third option.
This is because, "it's" is properly used as it means "it is" and also the use of the pronoun "hers" is properly used.
Dialogue can show the reader how the character thinks, interacts with others, communicates, and possibly even where the character is from and/or their educational level.