The statement that fine-tuning "replaces the model's general knowledge entirely" isincorrect. Fine-tuning is a process of "incremental learning" where a pre-trained model (which already possesses vast general knowledge) is further trained on a smaller, domain-specific dataset—such as an organization's internal API documentation or historical test scripts. The goal is to adjust the model's internal weights so that it becomes more proficient in a specific area (Option A) and adheres better to local terminology and formatting standards (Option C). It doesnoterase the foundational language capabilities of the model. Furthermore, fine-tuning is a common strategy for Small Language Models (SLMs) to allow them to punch above their weight class in specific tasks while remaining computationally efficient (Option D). However, if done poorly, fine-tuning can actuallycauseoverfitting (where the model becomes too rigid and loses its ability to generalize), rather than preventing it. Therefore, fine-tuning should be viewed as a "specialization" layer rather than a total replacement of the model's base intelligence.