D is correct answer : local
"By default, Terraform implicitly uses a backend called local to store state as a local file on disk. Every other backend stores state in a remote service of some kind, which allows multiple people to access it. Accessing state in a remote service generally requires some kind of access credentials, since state data contains extremely sensitive information."
https://www.terraform.io/language/settings/backends
The default backend used by the Terraform CLI is the local backend. This means that the state file is stored on the local file system in a file named "terraform.tfstate".
By default, Terraform uses a backend called local, which stores state as a local file on disk. You can also configure one of the built-in backends listed in the documentation sidebar.
D correct
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