When Cloze questions are exported into Word, the awkward Moodle syntax is used to encode options instead of the simpler style-based syntax that authors can use if creating Cloze questions directly in Word.
Ideally, the export function should automatically convert Moodle syntax into Word format (bold, italic, etc.).
Alternatively, the Word template should include a command/macro that allows the author to re-format these options into the simpler format-based mechanism, e.g. "

" should be <u>Berlin</u>