I am trying to create a gap fill exercise but need to be able to include answers that have multiple words. Does anyone know if this is possible with drop-down or drow & drag answers?
Yes you can do this. Just select a number of words before right clicking and clicking 'Mark Word'.
If you are adding distractors and want these to include spaces then you will need to change the delimiter that specifies when each distractor ends. To do this add the 'Delimiter' optional property and change the one for distractors to something other than a space. You can then, for example separate the distractors by commas instead of spaces.