Final answer:
The locally significant identifier used in Frame Relay networks is the DLCI. This identifier is crucial for multiplexing virtual circuits over a single physical connection, distinguishing it from other networking identifiers like IP and MAC addresses.
Step-by-step explanation:
The locally significant identifier used by a Frame Relay network to reference a virtual circuit is a) DLCI (Data Link Connection Identifier).
Frame Relay is a high-performance WAN protocol that operates at the physical and data link layers of the OSI reference model. DLCI values are assigned by the Frame Relay service provider and are used to multiplex various virtual circuits over the same physical network connection. It's important not to confuse DLCI with other identifiers like b) IP address, c) MAC address, or d) VLAN ID, as these serve different purposes within network protocols.