Check Point Certified Security Administrator (CCSA) R81.10 Guide (page 187):
"SmartUpdate installs the following repositories on the Management Server:
• License & Contract - Stored on all platforms in the directory $CPDIR\conf\
• Package Repository - Stored on Windows machines in C:\SUroot and Unix- based machines in /var/log..."
C - The question is asking about the appropriate repository, which is on the Security Management Server. It is only then transferred to the Security Gateway.
D is correct.
https://sc1.checkpoint.com/documents/R81/WebAdminGuides/EN/CP_R81_Installation_and_Upgrade_Guide/Topics-IUG/Licenses-Stored-in-Licenses-and-Contracts-Repository.htm
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