If I take my Iphone 5c to the apple store to be fixed with the service charge of $269, if they can't fix it do they replace the phone? Or will I have to pay retail price for a new phone?

I have a water damaged iphone 5c. I was thinking about taking it to the Apple store and paying the 269 dollar service charge for them to attempt to fix it. My question is: If they can't fix it, will they replace my phone for that $269 dollars, or will I have to pay full retail price for a new phone?

They do not repair at all.
The replace.
The $269 is for a replacement.

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