The correct answer to the Handstand Full Up quiz is the skill is first Legal in Level 3. In prior seasons Level 3 limited inversions to 1/2 twisting rotation. A rule change for the current season allows inversions to prep level and below to twist up to 1 rotation. The rule now says:
Inversions are limited to a 1/2 twisting rotation to extended level and one twisting rotation to prep level and below.
The explanation is based on the 2017-18 version of the cheer rules dated August 30, 2017.