Location Targeting regardless of the user’s location

If the query “Seattle plumbers” is entered into Google, Google will use the location term that is part of the query to show ads:

• Targeted to areas surrounding the city of Seattle.
• That have included “Seattle” as an exact match in keyword lists.
• Targeted to Seattle, regardless of the user’s location as long as they are in the US.
• To that user based on IP (Internet Protocol) address.

The Correct Answer is:
Targeted to Seattle, regardless of the user’s location as long as they are in the US.
Explanation: Advanced location targeting options allow you to reach:

• People in, searching for, or viewing pages about your targeted location (default)
• People in your targeted location
• People searching for or viewing pages about your targeted location

You can read more here: https://support.google.com/partners/answer/1722038?hl=en