The void ratio is given by:
\[ e = \frac{w_i G}{S_i} \]
Substituting the values:
\[ e = \frac{18 \times 2.74}{65} = 0.7587 \]
The water content at a new saturation level is given by:
\[ w = \frac{e S}{G} \]
Substituting the values:
\[ w = \frac{0.7587 \times 85.2}{2.74} = 23.59\% \]
Correct Answer: \( \mathbf{23.59\%} \) (rounded to two decimal places).