For Trader Sam (post 461679) and Jeff Deluca (post 461745):
First of all, the ms152560 reference says:
"It is recommended to set [the sync with backup] option on the distribution database in all cases."
To me, that means when setting sync with backup on the publisher, you would also set it on the distributor per the above recommendation.
Sync with backup causes latency only when set on the publisher.
Option 1 has sync with backup set on both publisher and distributor. Since sync with backup is set on the publisher, there will be latency. Logically, this option evaluates to "true" for the question "Will there be latency?" (Jeff - I did not have in mind the further latency that would be due to a slightly longer time to back up the log on the publisher. I only had in mind the fact that the sync with backup option should be set on the distributor in all cases.)
Option 2 has sync with backup set only on the distributor. There will be no latency in this case, so this option logically evaluates to "false."
Option 3 says "both." To me, that means both Option 1 and Option 2 would lead to latency, i.e., both would logically evaluate to "true." That is not the case.
Option 4 says "neither of these". That means, logically, that both Option 1 and Option 2 must give an answer of "false." This answer is not correct, since Option 1 gives an answer of "true."
I hope this helps. I apologize that this question was a test of both logic reasoning and the ability to interpret the logic in the Books Online reference.