Dorothy was cheated by a company on the pretext that she was making an investment. She plans to file a case against the company claiming compensation of 50,000.
Dorothy’s lawyer would file this case in the(district, circuit, or court of appeals) . If the outcome is not in her favor, her lawyer plans to challenge the decision in the (district, circuit, or court of appeals).

Dorothy’s lawyer would file this case in the district court. if the result is not in favor of Dorothy, her lawyer challenge the decision in the Appellate court.

Explanation:

District courts are those courts where crime cases, civil cases and domestic relation cases are resolved. So the Dorothy’s lawyer would file this case in the district court. If the result of her case in the district court is not in favor of her so the Dorothy’s lawyer would file this case again in the Appellate court where the second appeal of the case would be heard and resolved according to the laws. Appellate courts are also known as appeal courts where second appeal should be done.

it foreshadows the theme of the paragraph and hints the topic that will be discussed in the paragraph!

the answer is a new goverment.