In-market audience targeting consists of people:

• who are currently researching options and actively considering buying a product or service like yours
• who are in your overall target demographic group
• whom you’ve reached through remarketing
• who are interacting with contextually relevant content

The correct Answer is:

• who are currently researching options and actively considering buying a product or service like yours

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• Google Display Advertising Exam – All Q&As
• * Updated on 25-Apr-2019
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Explanation: Select from these audiences to find customers who are in the market, which means that they are researching products and are actively considering buying a service or product like those you offer. In-market audiences are available to advertisers in all AdWords languages.

Read more here: https://support.google.com/adwords/answer/2497941?hl=en