The correct answer is D. Grant the roles/storage.objectAdmin Identity and Access Management (IAM) role to the Cloud Build service account on the state file bucket.

According to the Google Cloud documentation, Cloud Build is a service that executes your builds on Google Cloud Platform infrastructure1. Cloud Build uses a service account to execute your build steps and access resources, such as Cloud Storage buckets2. Terraform is an open-source tool that allows you to define and provision infrastructure as code3. Terraform uses a state file to store and track the state of your infrastructure4. You can configure Terraform to use a Cloud Storage bucket as a backend to store and share the state file across multiple users or environments5.

The error message indicates that Cloud Build failed to access the Cloud Storage bucket that contains the Terraform state file. This is likely because the Cloud Build service account does not have the necessary permissions to read and write objects in the bucket. To resolve this issue, you need to grant the roles/storage.objectAdmin IAM role to the Cloud Build service account on the state file bucket. This role allows the service account to create, delete, and manage objects in the bucket6. You can use the gcloud command-line tool or the Google Cloud Console to grant this role.

The other options are incorrect because they do not follow Google-recommended practices. Option A is incorrect because it changes the Terraform code to use local state, which is not recommended for production or collaborative environments, as it can cause conflicts, data loss, or inconsistency. Option B is incorrect because it creates a new storage bucket with the name specified in the Terraform configuration, but it does not grant any permissions to the Cloud Build service account on the new bucket. Option C is incorrect because it grants the roles/owner IAM role to the Cloud Build service account on the project, which is too broad and violates the principle of least privilege. The roles/owner role grants full access to all resources in the project, which can pose a security risk if misused or compromised.