A Local Area Network interconnects computers and other devices within a relatively small physical area, typically using high speed links. Organisations use LANs to share resources such as printers, files and internet connections. The limited scope allows for easier management and lower latency. Therefore, the network described in the question is a LAN.
Option A:
Option A, MAN, or Metropolitan Area Network, spans a city or large campus and covers a wider geographic area than that mentioned in the stem.
Option B:
Option B, WAN, or Wide Area Network, extends over large regions or countries and connects multiple LANs, which goes beyond the constraints of a single building or campus.
Option C:
Option C, PAN, or Personal Area Network, is focused on very short range communication around an individual, such as connections between a phone and a headset.
Option D:
Option D is correct because LAN is the standard term used in ICT to refer to networks confined to small areas like offices, schools or laboratories.
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