Which kind of storage does Time Machine utilize for backing up files?

Time Machine is designed to provide a flexible and efficient backup solution for macOS users. The correct answer highlights that Time Machine can utilize external drives, internal drives, or compatible networked computers as storage options for backing up files.

This versatility is essential for users who might not have enough internal storage available or prefer to keep backups on external devices for added safety. External drives can be USB-connected, Thunderbolt, or even FireWire, allowing for seamless integration. Additionally, Time Machine can connect to network-attached storage (NAS) that supports the Time Machine protocol, further enhancing convenience and backup options across different devices on the same network.

The other choices are more limited in their approach. Focusing solely on internal SSDs restricts the potential for backups and contradicts the flexibility that Time Machine is known for. Suggesting that it can only back up to any storage on the local machine overlooks the functionality that encompasses external and networked storage options. Lastly, claiming it works strictly with cloud-based storage services ignores Time Machine's primary function as a local backup solution, which is not inherently reliant on the internet for its backups. Therefore, option C accurately encapsulates the comprehensive storage options available for Time Machine backups.