Remember your Number system
After the decimal point to the right, the next digit is the TENTH, and next is HUNDREDTH.
So for 26.5 = 26.500.
The tenth digit is 5, and the Hundredth is 0.
After the hundredth digit which is 0, the next digit is also 0.
The second 0 is not up to 5, so we would not add to the first zero.
(Was it 5, or above, we would have added 1 to first zero)
So the answer is 26.50. If the next digit after the hundredth digit was 5 or more the answer would have been 26.51.
But for this question the answer is 26.50 to the nearest hundredth. Cheers.