When the default policy for the netfilter INPUT chain is set to DROP, why should a rule allowing traffic to localhost exist?

When the default policy for the netfilter INPUT chain is set to DROP, why should a rule allowing traffic to localhost exist?
A. All traffic to localhost must always be allowed.
B. It doesn’t matter; netfilter never affects packets addressed to localhost.
C. Some applications use the localhost interface to communicate with other applications.
D. syslogd receives messages on localhost.

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