Hello everyone, I'm just reporting that I failed the challenge for the above mentioned section even though I set up the compact layout differently, though appropriately per the instructions. 

The compact layout is one of the things you can set up as you run through "Salesforce1 Setup" from the top of the navigation in the setup page. 
This automatically sets the API reference to 'PhoneandEmail' instead of 'Phone_and_Email', which will cause you to fail the challenge even if you meet the criteria.

The current instructions don't mention the API name, but it seems like that's what the system checks for. Just letting you know!

Hello everyone, I'm just reporting that I failed the challenge for the above mentioned section even though I set up the compact layout differently, though appropriately per the instructions. 

The compact layout is one of the things you can set up as you run through "Salesforce1 Setup" from the top of the navigation in the setup page. 
This automatically sets the API reference to 'PhoneandEmail' instead of 'Phone_and_Email', which will cause you to fail the challenge even if you meet the criteria.

The current instructions don't mention the API name, but it seems like that's what the system checks for. Just letting you know!