Final answer:
The GPO that stores its settings on the local computer in the %systemroot%/System32/GroupPolicy folder is known as a Local Group Policy Object (LGPO).
Step-by-step explanation:
The type of Group Policy Object (GPO) that stores its settings on the local computer in the %systemroot%/System32/GroupPolicy folder is referred to as a Local Group Policy Object (LGPO).
When a Local Group Policy is applied, it affects only the computer on which it is stored. This contrasts with domain-based GPOs, which are stored on a domain controller and can affect multiple computers within the domain. The Local Group Policy is typically used when computers are not part of a domain or when it is necessary to apply specific settings to a single computer. In a Windows environment, the settings are managed via the Local Group Policy Editor, where administrators can configure policies for users and for the computer itself.