It is based on facts, hope this helped you!!
The question is asking how you will deal with the problem (in this case flooding) and what you could do to fix the damage it causes.
Example: Plant vegetation, because it can reduce the height of flooding, according to this website: http://www.bbc.com/news/science-environment-35777927
Yes you did it correctly. When quoting a sentence it needs to be put in quotation marks to show that those are not your words but somebody else's.
Hope this helps!!