Using the formula: [ R = \frac{V_{drop}}{I} = \frac{1.65}{85} \approx 0.0194\ \Omega ]

Fault current: (I_{short} = 110 / 0.0856 \approx 1285\ \text{A}).

Maximum allowable drop per core: 1.65 V (two cores in series).

Required correction: (Q_c = Q_1 - Q_2 \approx 3.56\ \text{kVAR}) (capacitive).