"She only drinks hot water."
It's true! Most Chinese prefer warm or hot water over cold water. Hence they offer tea first in chinese restaurants.
And you know you're in a place that serves Chinese clientele if they offer hot water to anyone Asian. =P
In English the word 'only' modifies the term 'hot water' so it ought be places right next to that term. If it is placed as the answer places it in Chinese, it means that she drinks it as opposed to doing sth else with the water. Is there a rule which demands that this adverb must be place in Chinese where it is placed?