Final answer:
The ID statement is used to uniquely identify observations in a dataset, and it is most useful for ensuring that each record can be individually referenced. Duplicate values in the variable specified in the ID statement are not allowed because each identifier is expected to be unique.
Step-by-step explanation:
The ID statement is used in various data processing and statistical analysis programs, such as SAS, to uniquely identify observations in a dataset. The correct answer to the question is c) The ID statement identifies the variable to use as labels. It is useful for uniquely identifying observations. Duplicate values are not allowed because each ID value should be unique to ensure that each record can be precisely referenced.
In practical terms, when you set a variable as an ID, you are saying that this variable will be used to label each row (or observation) of your data uniquely. For instance, in a dataset of students, a student ID number could act as a unique identifier for each student's record. Hence, if there are duplicate values in the variable specified in the ID statement, it could lead to confusion or errors in data handling, because the system would have trouble distinguishing between records that share the same identifier.