The sentence that is punctuated correctly is "The top two students—Kay and Hannah-could not wait for their upcoming graduation".
What is punctuation?
"Punctuation is the use of spacing, conventional signs, and certain typographical devices as aids to the understanding and correct reading of written text, whether read silently or aloud."
In the sentence, the use of em dash and dash is done at correct places that can be used instead of commas as compared to other sentences, where the punctuation marks are not placed at proper places.
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