Google continues to improve Google Docs and the Google Workspace platform! In one of the newer updates, they have added the ability to do Smart Chips that add drop down menus to documents. While this is usually useful in project management, and if you have the students working on complex projects you could introduce these items, but you can also create standardized test like questions where students have to select the proper response.
To set this up, open up your Google Doc and then type a quick reading passage or text set for the students to review. Once you have that, figure out what words you want to remove from the text. Highlight the words and then high the @ sign on your keyboard. Then, create a new drop down list.