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First blank - we need a verb in the plural form to agree with the plural subject PEOPLE. The sentence talks about how nearly 1.1 million people live in a designated hurricane evacuation zone. RESIDE will fit here. OCCUPY and INHABIT will not take the preposition IN after them. Second blank - we need a verb in the base form to follow the modal verb DOES. The sentence talks about how this number does not take into consideration seasonal tourists or students. INCLUDE and COUNT will fit here. INVOLVE means cause to participate and will fit be apt here.