Final answer:
The magnetic field surrounds magnetic objects and has an effect over a distance, not just on nearby objects, and decreases in strength with distance.
Step-by-step explanation:
The magnetic field indeed exists around magnetic objects and acts over a distance, affecting other magnetic or ferromagnetic materials. Hence, the correct answer to the question is A) Yes, it exists and affects other objects. Magnetic fields are not limited to acting on nearby objects only, and their strength decreases as the distance from the magnetic object increases. The pictorial representation of magnetic field lines provides useful visualization of this phenomenon, showing the paths along which the north end of a compass needle would point were it placed at various locations around the magnet. Einstein's early fascination with how a compass needle felt a force without direct physical contact highlights the intrigue of action at a distance, foundational to magnetic fields and eventually contributing to his theory of relativity.