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D is it
This is the correct and most common approach for granting external users (community/Experience Cloud users) access to records related to their own account or contact. Sharing Sets allow you to define sharing rules for external users based on lookup fields on the user's contact or account record. For example, you can set up a Sharing Set that grants "Read/Write" access to all Cases where the Case's Contact field matches the community user's Contact record, or where the Case's Account field matches the community user's Account record. This scales very well because you define the rule once for a profile (or profiles), and it automatically applies to all users with that profile based on their associated contact or account.