Wasn't really sure when I clicked 'submit'. I would have thought that KEYSET was a TYPE of cursor, and not the operator that generated the cursor.

For example (stolen from a 2007 Grant Fritchey post):

DECLARE CurrencyList CURSOR KEYSET FOR

SELECT CurrencyCode FROM [Sales].[Currency]

WHERE Name LIKE '%Dollar%'

But, since none of the other choices seemed correct, I went with it and was rewarded with another point I can put in my retirement account.