If you choose Yes for this option, the student will be allowed multiple responses to a question even within the same attempt at the quiz. If a student's response is marked as incorrect, the student will be allowed to try again immediately. However, a penalty will usually be subtracted from the students score for each wrong attempt. The amount of penalty is determined by the penalty factor setting.
This mode also allows adaptive questions that can change themselves in response to a student's answer. In adaptive mode, an additional button is shown for each question. If the student clicks this button, the response to that particular question is submitted to be scored and the mark achieved is displayed to the student. The adaptive question is displayed in its new state (one that can take the student's answer into account and ask the student for another input). In the simplest adaptive questions, this new state may differ only in the feedback text and prompt the student to try again; in more complicated questions, the question text and even the interaction elements can change.