To answer this question, we need to understand the PROC SORT statement in SAS and how it affects the output dataset.
The PROC SORT statement is used to sort a dataset in SAS. In the given code, the SORT procedure is used to sort the dataset named "data" from the library "lib.temp". The "By subjid" statement specifies that the dataset should be sorted by the variable "subjid".
The "out" option in the PROC SORT statement specifies the name of the output dataset. In this case, the output dataset is named "temp2".
Based on the given code, the output dataset "temp2" is created in the WORK library. The WORK library is a temporary library in SAS that is used to store temporary datasets created during a SAS session.
Therefore, the correct answer is:
Option A) work - This option is correct because the output dataset "temp2" is created in the WORK library.