Final answer:
The inside address in a business letter should be located between the dateline and the salutation, where it is left-justified and followed by a blank line before the salutation.
Step-by-step explanation:
When composing a business letter, the inside address should appear right after the sender's address and the date. Therefore, the correct location for the inside address is between the dateline and the salutation.
The inside address is a crucial element of the business letter format and includes details like the recipient's name, title, organization or school name, and the complete organizational or school address. This address should always be left-justified and followed by a blank line before starting the salutation. According to the standard block formatting used in business letters, this maintains clarity and ensures that the letter is easy to read.