The popular question type plugin – Gapfill Question maintained by Marcus Green, which enables you to create Dropdown, Dragdrop and gapfill type questions in your Moodle question bank simply by “Putting square braces around the missing words” , has been updated recently for Moodle 2.7 & 2.8 versions.
Gapfill question module enables you to place the words to be completed within square brackets e.g. The [cat] sat on the [mat]. If mat or rug are acceptable use [mat|rug]. Dropdown and Dragdrop modes allows for a shuffled list of answers to be displayed which can include optional wrong/distractor answers.
Dragdrop shows a list of words that can be dragged into the gaps, gapfill shows gaps with no word options, dropdown shows the same list of correct (and possibly incorrect) answers for each field.
This type of question can be particularly useful for teaching languages.
You can download the latest version of the plugin from this link: https://moodle.org/plugins/view/qtype_gapfill
To install the plugin you need to extract the contents of the zip file in yourmoodledirectory/question/type or if you are using the web installer then install it under Question Type (qtype) category.
For more documentation about using this plugin: http://docs.moodle.org/en/question/type/gapfill