**Introduction:**
The Canary Islands are an archipelago located in the Atlantic Ocean. They are a group of Spanish islands and an autonomous community of Spain. The islands are situated off the northwest coast of Africa, close to Morocco and Western Sahara.

**Location:**
The correct answer is option 'A' - Spain. The Canary Islands are part of the territory of Spain. They are located in the African plate, specifically in the Macaronesia region, which also includes Madeira, the Azores, and the Cape Verde Islands.

**Geography:**
The archipelago consists of seven main islands: Tenerife, Fuerteventura, Gran Canaria, Lanzarote, La Palma, La Gomera, and El Hierro. These islands are volcanic in origin and are known for their beautiful beaches, unique landscapes, and mild climate.

**Autonomous Community of Spain:**
The Canary Islands are an autonomous community of Spain, which means they have their own government and legislative powers. They are one of the 17 autonomous communities that make up the country of Spain. The archipelago has its own capital city, Santa Cruz de Tenerife, and the islands are further divided into two provinces: Santa Cruz de Tenerife and Las Palmas.

**Economy and Tourism:**
The Canary Islands have a diverse economy, with sectors such as tourism, agriculture, and services playing a significant role. The islands are a popular tourist destination, attracting millions of visitors each year. The pleasant climate, stunning beaches, and natural beauty of the islands make them an ideal vacation spot.

**Conclusion:**
In conclusion, the Canary Islands are located in Spain. They are an autonomous community of the country and are known for their volcanic landscapes, beautiful beaches, and thriving tourism industry.