To answer this question, let's go through each option to understand why it is correct or incorrect:
Option A) In datastep input is read from temporary location and output is written to temporary location.
This option is incorrect because the LIBNAME statement libname temp ‘abc.sds.as’; specifies the library temp as a permanent location, not a temporary location.
Option B) In datastep input is read from permanent location and output is written to temporary location.
This option is incorrect because the LIBNAME statement libname temp ‘abc.sds.as’; specifies the library temp as a permanent location, not a temporary location. Additionally, the output dataset temp.X1 is stored in the library temp, which is a permanent location.
Option C) In datastep input is read from temporary location and output is written to permanent location.
This option is incorrect because the LIBNAME statement libname temp ‘abc.sds.as’; specifies the library temp as a permanent location, not a temporary location. Additionally, the output dataset temp.X1 is stored in the library temp, which is a permanent location.
Option D) In datastep input is read from permanent location and output is written to permanent location.
This option is correct because the LIBNAME statement libname temp ‘abc.sds.as’; specifies the library temp as a permanent location. The input dataset sasuser.X2 is read from a permanent location (the sasuser library), and the output dataset temp.X1 is written to a permanent location (the temp library).
The correct answer is D) In datastep input is read from permanent location and output is written to permanent location.