Which statement regarding local variables is true?

Local variables are designed to hold temporary data specific to the context of a screen or a certain action within the application. They enable developers to store values that are relevant only during the execution of that screen's logic. This makes local variables essential for managing transient data, such as user inputs or intermediate calculations, which do not need to persist beyond the screen's lifecycle.

In practical terms, local variables can be used to capture form data before submitting it, manipulate values for display, or manage state within complex UI interactions without affecting data outside of their scope. This encapsulation of data increases security and reduces the risk of unintended side effects that might occur if that data were to be accessed globally or affect other screens.