<field-criteria> as part of <hris-field=”jobInfo”>
<association> as part of <hris-element id=”location”>

Well read the question properly. "configure the filtering of the location field". The parameter used for fields is "hris-field". For porlets its "hris-element id". so tell me now which is the answer, location or jobinfo? The association is from Location to Legal Entity. So which of the two association can it only be? :o)

Then wat is the correct answer?

I agree! You must add a field criteria and one association - not two associations!! Who in hell submits these quizzes? They need their wrists slapped.

You need to create a one to many association from Location to Legal Entity. You also need to configure filtering of the location file based on the company field in the Job Information Portlet.
What do you need to add to the data models?
There are 2 correct answers to this question.
Response:

The answer for this is wrong