D is directly aligned with Claude Code's configuration model. The supplied exam source marks D . Anthropic documents settings.json as the official mechanism for configuring Claude Code through hierarchical scopes. Shared project configuration is stored in .claude/settings.json , which is intended to be checked into source control and shared with the team.
Project settings provide consistent repository-level behavior while still participating in Claude Code's configuration precedence. They can configure permissions, environment variables, tool behavior, and other supported project policies. Claude Code additionally distinguishes shared project settings from .claude/settings.local.json, which is intentionally excluded from source control and is suitable for developer-specific experimentation or machine-local overrides.
A spreadsheet provides documentation but no executable configuration enforcement. B allows every developer's configuration to diverge and is appropriate only for values that genuinely belong to the local environment. C requires manual repetition and cannot reliably establish repository-wide policy.
Therefore, shared project settings.json is the appropriate configuration-as-code mechanism.
Relevant Claude Developer topics: Confia Management, Claude Code configuration, settings scopes, project settings, permissions, environment configuration, team consistency, and source-controlled configuration .
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