The correct answer is option 'D', which states that the Formosa Strait is located between Taiwan and China.

Located in the western Pacific Ocean, the Formosa Strait is a narrow body of water that separates the island of Taiwan from the mainland of China. The strait has great strategic importance as it serves as a major international shipping route, connecting the East China Sea to the South China Sea.

Here is a detailed explanation of the location and significance of the Formosa Strait:

1. Geographical Location:
- The Formosa Strait, also known as the Taiwan Strait, is situated in East Asia.
- It lies between the island of Taiwan (officially known as the Republic of China) and the southeastern coast of mainland China (officially known as the People's Republic of China).
- The strait stretches approximately 180 kilometers (110 miles) in length and has an average width of 130 kilometers (80 miles).
- It is bordered by the East China Sea to the north and the South China Sea to the south.

2. Separating Taiwan and China:
- The Formosa Strait acts as a natural boundary between Taiwan and China.
- Taiwan, an island located to the east of mainland China, has its own government, economy, and military, separate from the People's Republic of China.
- The strait serves as a physical divide between these two political entities.

3. International Shipping Route:
- The Formosa Strait is an important international shipping route due to its strategic location.
- It connects major ports in East Asia, such as Shanghai, Ningbo, and Xiamen on the Chinese mainland, with ports in Taiwan, Southeast Asia, and beyond.
- The strait facilitates the transportation of goods, energy resources, and manufactured products between these regions and the rest of the world.

4. Political Significance:
- The Formosa Strait has significant political implications due to the complex relationship between Taiwan and China.
- China considers Taiwan as part of its territory and has not renounced the use of force to bring the island under its control.
- The strait serves as a symbolic and strategic point of contention between the two governments, and its navigation is closely monitored by both sides.

In conclusion, the Formosa Strait is located between Taiwan and China. It is an important international shipping route and holds political significance due to the complex relationship between Taiwan and China.