Final answer:
User Criteria to control read and edit permissions for knowledge articles are set at the Knowledge Base or Article level, not in the User record or Knowledge Base only.
Step-by-step explanation:
The User Criteria that controls who can read and edit knowledge articles is set at the level of the Knowledge Base or Article. Therefore, the correct answer is option 1) In either the Knowledge Base or Article. User Criteria define access permissions for various actions such as viewing, editing, and publishing. They are essential for maintaining the knowledge management system's security and ensuring the right people have access to the right information. This customization allows organizations to manage their knowledge articles effectively and make sure that sensitive information is well protected.