To find out when Ann finished playing in the backyard, we need to calculate the time she started playing and then add 1 hour and 56 minutes to that.
Ann started walking to her grandparents' house at 9:38 a.m. and took 41 minutes to get there. So, she arrived at her grandparents' house at 10:19 a.m.
Now, to find out when Ann started playing in the backyard, we add 1 hour and 56 minutes to 10:19 a.m.
10:19 a.m. + 1 hour 56 minutes = 12:15 p.m.
Therefore, Ann started playing in the backyard at 12:15 p.m.