What is a possible side effect of using fertilizers and pesticides farmland?

Nothing. It's good fertilizer for the grass.
Acid rain could impact the watershed downstream.
Runoff water could carry nutrients such as phosphates and nitrates to the local streams, increasing these levels.
It actually helps the watershed filter out pollutants.

The correct answer is: Runoff water could carry nutrients such as phosphates and nitrates to the local streams, increasing these levels.