The correct option is Set the repository path where run steps execute so relative paths resolve correctly. This ensures every run step starts from the same base folder so the team does not need to repeat the path in each step of the workflow.

Configuring a default working directory makes all run steps inherit the same starting directory. In GitHub Actions this is done with the defaults for run which causes relative paths in commands and scripts to resolve from that directory. This simplifies monorepo workflows and reduces repetition and path errors.

Limit script access to only certain folders on the runner is incorrect because a working directory does not restrict filesystem access. It only sets the starting directory and does not act as a sandbox.

Choose the directory where command output files are stored after scripts run is incorrect because output locations are determined by the commands or by artifact upload steps. The working directory only defines where commands begin execution.

Improve job isolation to harden security for each script execution is incorrect because isolation comes from separate jobs, runners, containers, and permissions. The working directory setting does not change isolation.

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