Type _____ cable can be directly buried in a trench underground if covered with stabilized sand to prevent physical damage.

Type UF (Underground Feeder) cable is specifically designed for direct burial applications. This type of cable is constructed with a moisture-resistant jacket and is made to withstand the environmental conditions associated with being placed underground. When Type UF cable is buried in a trench, it is still recommended to cover it with stabilization, such as sand, to further protect it from physical damage and to ensure it remains secure in the soil. This protective measure can prevent abrasion and possible damage from rocks or other sharp objects.

The other cable types listed are not suitable for direct burying without additional conduit or protection. NM (Non-Metallic Sheathed) cable is intended for indoor residential use and should not be used for underground installations. MI (Mineral Insulated) cable, while capable of withstanding harsh conditions, is typically not used for direct burial without special provisions. AC (Armored Cable) also requires protection when used underground and is not rated for direct burial without additional measures.

Thus, the correct answer is Type UF cable, as it is specifically engineered to be buried directly in the ground under the stated conditions.