• The poverty line is determined by the cost of a basket of essential goods and services needed for a person to meet their basic needs.

• If the price of these essentials varies significantly between states, the poverty line needs to be adjusted to reflect the different costs of living.

• So, even if poverty rates might be similar, states with higher prices for essential goods will have a higher official poverty line.

Therefore, the correct answer is B) Price levels vary from State to State.