What does the term 'local storage' refer to in the context of Mac OS X?

Local storage in the context of Mac OS X refers specifically to data that is stored directly on the device's hard drive or connected external drives. This encompasses files, applications, and other data that reside physically on the local machine rather than being hosted remotely on the internet or external servers.

When users interact with local storage, they are accessing data that is readily available without the need for an internet connection, which enhances speed and performance for many applications and tasks. Volumes that are connected directly to the local machine can include internal drives, external USB drives, or other direct media storage options that allow users to store and retrieve their data seamlessly.

In contrast, the other options delineate different storage types: files stored on the internet describe cloud storage, which requires network access; backups on external servers indicate a reliance on networked solutions; and virtual drives created by the OS pertain more to temporary storage configurations rather than persistent physical storage solutions. Thus, the concept of local storage is fundamentally about physically accessible storage media directly associated with the Mac OS X environment.