The code OXY in the bottom white quadrant of a label conforming to NFPA 704 indicates that:

Possible Answers:

1. The material can easily release oxygen to create or worsen a fire or explosion hazard
2. The material reacts with water
3. The material will explode on contact with air
4. The material is radioactive

Explanation:

OXY Is a code usually written in the white bottom quadrant of a label. The score generally indicates that the material inside the package is an oxidizer, meaning it can release oxygen. Writing is mandatory because an oxidizer can result in an explosion or fire. 

The code typically shows all this information, which is why the workers must handle this product with care, as the probability or chances of hazardous incidents are high.

References:

• https://emilms.fema.gov/is_0005a/curriculum/1.html