Nah, I don't think that's the case. The local backend stores the state file in the same directory as your Terraform configuration, which is option C. I'm pretty confident about that.
Wait, hold up. Isn't the local backend supposed to store the state in the user's home directory by default? I thought option D was the right answer here.
Hmm, this seems like a pretty straightforward question. I'm pretty sure the local backend stores the state in the terraform.tfstate file, which is the default location unless you specify otherwise.
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