Let's analyze the number 123.456 and determine the place value of the digit 5.
Firstly, let's break down the number based on place values:
- The digit 1 is in the hundreds place.
- The digit 2 is in the tens place.
- The digit 3 is in the ones place.
- Following the decimal point, the digit 4 is in the tenths place.
- The digit 5 is in the hundredths place.
- The digit 6 is in the thousandths place.
Given these place values, the digit 5 is in the hundredths place.
So, the correct answer is:
O 5 hundredths