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To create a system group using the `groupadd` command, the correct option is to use the `-r` flag. This flag is specifically designed to indicate that the group being created is a system group, which typically has a Group ID (GID) less than 1000 on most Linux systems.

System groups are used for system-related tasks and applications, and they help isolate user permissions for processes running under these groups. When you specify the `-r` option, the system automatically assigns a suitable non-duplicating GID for the new system group. This helps in maintaining the organization of the various groups on the system.

On the other hand, the other options like `-g`, `-s`, and `-d` serve different functions. The `-g` option allows you to set a specific GID for the new group rather than automatically assigning one, which is not directly related to creating a system group. The `-s` option can be used with user management commands like `useradd` to specify a shell but does not apply to group management. Lastly, the `-d` option is utilized for specifying a home directory when creating a user, not a group.

By understanding that the `