Create escalation templates An escalation template determines how an escalation request is processed and includes the type of escalation (case or account), an approval list or workflow (if approval is required), and an escalation watch list.
Source: https://docs.servicenow.com/bundle/washingtondc-customer-service-management/page/product/customer-service-management/task/configure-escalation-management.html
B is correct.
Create escalation templates An escalation template determines how an escalation request is processed and includes the type of escalation (case or account), an approval list or workflow (if approval is required), and an escalation watch list.
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