Take a look at the sentence again:

The students who have Mr. Sebacher for World Literature believe that their professor reads Homer, Dante, and Shakespeare all evening. The reality is that Mr. Sebacher __________ on the couch, eats corn chips, and channel surfs until midnight.

Mr. Sebacher rests on the couch. Thus, you need a form of lie. Since the sentence is present tense, you need the simple present form. Consult the table below or review the rules.

Infinitive Definition Simple Present Simple Past Past Participle Present Participle
to lay to put something down lay(s) laid laid laying
to lie to rest or recline lie(s) lay lain lying

Go to the next sentence.

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