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You configure Volume Shadow Copy Service (VSS) to save previous versions of a shared folder. By
default, the copies of shared folders are stored in:

A. A Network Attached Storage (NAS) device.

B. A Distributed File System (DFS) share.

C. A failover cluster.

D. A local volume.

Explanation:
Shadow Copy technology requires the file system to be NTFS to be able to create and store shadow copies.
Shadow Copies can be created on local and external (removable or network) volumes by any Windows
component that uses this technology, such as when creating a scheduled Windows Backup or automatic
System Restore point.

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