What is true about where an API policy is defined in Anypoint Platform and how it is then applied to API instances?

What is true about where an API policy is defined in Anypoint Platform and how it is then applied to API instances?
A . The API policy is defined in Runtime Manager as part of the API deployment to a Mule runtime, and then ONLY applied to the specific API instance.
B . The API policy is defined in API Manager for a specific API instance, and then ONLY applied to the specific API instance.
C . The API policy is defined in API Manager and then automatically applied to ALL API instances.
D . The API policy is defined in API Manager, and then applied to ALL API instances in the specified environment.

Answer: B