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Take a look at the course blog for the topic "TextEdit Travails." Looks like you need to set the preferences to "plain text." Go ahead and do this, and re-upload (and re-tag, so I look at it again), and you should be good.
This is fine for the assignment, but note that it will not validate (I assume). Take a look at that second <ul>. You've got an un-nested <p> tag there--it starts before the <ul> and ends before the </ul>. Actually, that <p> is extraneous, so you can just delete it...