What is the texture of soil that has the highest water-holding capacity? 

Clay soil has the highest water-holding capacity among the given options. This is because clay soil contains fine particles that have a high surface area and can hold onto water molecules tightly. The small spaces between the particles also allow for water retention, making clay soil able to hold onto more water than sandy or silty soils. However, too much water retention in clay soil can lead to drainage problems and root suffocation. Loam soil is a mixture of sand, silt, and clay and has a balanced water-holding capacity and drainage.