Here are the correct answers for each blank:

**Question 36:** C. village
**Question 37:** D. seen
**Question 38:** C. round
**Question 39:** A. sleeps
**Question 40:** A. steal

So, the completed passage would read:

Peter loves working in the garden. It’s his favourite hobby. He grows a lot of fruit and vegetables there. Every year there is a competition in his **village** to find the best watermelon and Peter always tries to win. This year he’s feeling very happy because he thinks he’s got the biggest watermelon that anyone has ever **seen**. It looks like a football! It’s green and **round**. And so big that Tom can’t pick it up. It's too heavy! He gives it lots of water every day and every day it gets even bigger.
At night, he takes his blanket outside and **sleeps** on the ground next to his watermelon to look after it. He’s afraid because someone might climb over the wall and **steal** it! Tom decides that this year he’s not going to lose the completion!