Which feature distinguishes location extensions from regional and customized campaign targeting?

Location extensions will appear when an advertiser has targeted a specific region or location.
Location extensions will appear when a user located near the advertised business searches on relevant terms.
Customized campaign targeting determines which address appears below the ad.
Customized campaign targeting is required in order to enable location extensions.

The correct answer is:

Location extensions will appear when a user located near the advertised business searches on relevant terms.

Explanation:

Location extensions show your business address, phone number, and a map marker with your ad text.
On mobile, they include a link with directions to your business.
Clicks on ads with location extensions cost a standard cost-per-click.
Location extensions encourage people to visit you in person.
You can add multiple addresses manually, or by linking your account to Google My Business.
On average, ads with location extensions see a 10% boost in clickthrough rate.
You can target your ads around your business addresses.

You can read more here: https://support.google.com/adwords/answer/2404182?hl=en

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Which feature distinguishes location extensions from regional and customized campaign targeting?

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