What type of reports must the GPOW prepare at the end of their watch?

The correct choice emphasizes the necessity for the Gangway Petty Officer of the Watch to document their observations and activities during their shift. Daily activity reports are critical as they provide a comprehensive account of the watch's proceedings, including any incidents, movements, and other relevant occurrences. These reports are instrumental in maintaining situational awareness and ensuring continuity between shifts.

Such documentation allows for a clear record of events that can be referenced by incoming watch personnel and provides a means for accountability and review. While other types of reports, like financial statements or personnel reviews, do hold significance in their respective contexts, they do not pertain to the specific responsibilities of the GPOW during their watch. Therefore, focusing on daily activity and incident reports aligns perfectly with the GPOW's role in keeping track of watch-related happenings.