According to the Liquor Licence Act, how is "alcohol" defined?

The correct choice appropriately centers on the definition of alcohol in the context of the Liquor Licence Act. The definition as "a product derived from the fermentation of grains and fruits" accurately reflects the standard understanding of alcoholic beverages. This definition captures the essence of alcoholic beverages, which are primarily created through fermentation processes involving sugars found in grains and fruits, yielding ethanol as the intoxicating component.

This choice aligns with the regulatory framework that governs the production, sale, and consumption of alcohol, emphasizing the natural origins of the substances involved in the fermentation process. Other definitions may not encapsulate the specificity required by law or may be too broad, failing to pinpoint the fundamental processes that qualify a liquid as alcoholic under legal standards. Definitions emphasizing all liquids with any type of alcoholic content, synthesized ethanol, or a vague category of beverages do not provide the precision needed to accurately define alcohol in legal terms. Thus, this choice reinforces the necessary clarity within the legal framework governing alcoholic products.