The term "territorial water" refers to the fourth option, which is the water of the sea located close to the coast of a country. Territorial waters are recognized as a part of a country`s territory and are subject to its jurisdiction. They extend up to 12 nautical miles from the baseline of a coastal state`s area. Within these waters, the coastal state has the right to regulate and control various activities such as fishing, navigation, and resource exploitation. It is important to note that territorial waters are different from international waters or the high seas, which are not under the control of any individual country. The concept of territorial waters is governed by international law, specifically the United Nations Convention on the Law of the Sea (UNCLOS). Therefore, option 4 accurately defines the term "territorial water."