The answer is (c): Position the handle into the holder with the hammer pointing back toward the table, as seen in the photograph at the right below.
The hammer head pulls downward, creating sufficient counterclockwise torque around the hinge that the hinged board rises to vertical, the maximum that it can reach due to the constraint on the hinge. Another way to view this result is that the center of mass of the entire system is at its lowest position when the heavy hammer head is at its lowest position.
