The correct answer is, as I answered, Individualized Education Plan. Individual Education Plan is incorrect. Simply Google IEP and you can see the correct word usage.
Because this type of short answer test does not allow for subtle variations in language, I feel a multiple choice test would suit this topic much better. Many other questions have incorrect answers listed. The errors are real, however, based of small misuses of language. It seems that the creator of this test is not completely fluent in the details of English. And this test is based in English and requires detailed consistencies in English to answer questions correctly. Setting up multiple choice questions would allow the test taker to pick the closest to correct answer, such as Individual Education Plan, and get in correct. Rather than typing in the correct answer and getting it "wrong".