Answer:
The largest knitting needle that the box can hold would have to fit inside the box diagonally from corner to corner.
Using the Pythagorean theorem, we can find the diagonal of the box:
d = sqrt(40^2 + 30^2 + 20^2)
d = sqrt(1600 + 900 + 400)
d = sqrt(2900)
d = 53.85 cm (rounded to two decimal places)
Therefore, the largest knitting needle that the box can hold would have a length of 53.85 cm or less.