English Translation
The rumor spread all over the town.
Both 町中 and 街中 are the correct Kanji.
The audio sound ちなか, and the transcript says まちじゅう. ちなか is completely wrong. It should be まちじゅう. We also pronounce 町中 as まちなか, but まちじゅう means “all over the town” whereas まちなか means “somewhere inside the town”. The rumor is now spreading. so まちじゅう is the right pronunciation in this sentence.