Which is the correct sentence?

1) Keep periods and commas within quotation marks.
So, for example:

According to Professor Jones, Lincoln "feared the spread of slavery," but many of his aides advised him to "watch and wait."

In the above example, both the comma and period were enclosed in the quotation marks. The main exception to this rule involves the use of internal citations, which always precede the last period of the sentence. For example:

According to Professor Jones, Lincoln "feared the spread of slavery," but many of his aides advised him to "watch and wait" (Jones 143).

Note, however, that the period remains inside the quotation marks when your citation style involved superscript footnotes or endnotes. For example:

According to Professor Jones, Lincoln "feared the spread of slavery," but many of his aides advised him to "watch and wait."2

2) Place all other punctuation marks (colons, semicolons, exclamation marks, question marks) outside the quotation marks, except when they were part of the original quotation.
Take a look at the following examples:

The student wrote that the U. S. Civil War "finally ended around 1900"!

The coach yelled, "Run!"

In the first example, the author placed the exclamation point outside the quotation mark because she added it herself to emphasize the absurdity of the student's comment. The student's original comment had not included an exclamation mark. In the second example, the exclamation mark remains within the quotation mark because it is indicating the excited tone in which the coach yelled the command. Thus, the exclamation mark is considered to be part of the original quotation.