The answer is B: Appointment fees will be refunded.
Explanation for each option:
A. No refunds will be issued. - This option is incorrect because it suggests that no refunds are possible, which contradicts the correct answer that specifies appointment fees will be refunded.
B. Appointment fees will be refunded. - This is the correct answer. Typically, if an appointment is denied, the specific fees associated with that appointment may be refunded, as the service was not rendered.
C. All application fees will be refunded. - This option is incorrect because it implies that all fees, including those not directly related to the appointment, will be refunded. Generally, application fees are non-refundable as they cover the cost of processing the application.
D. State taxes may be refunded upon a written request. - This option is incorrect because it introduces the possibility of state tax refunds, which are usually not related to the denial of an agent's appointment. State taxes are typically non-refundable unless there is a specific provision or error.