Can a federal court in State A hear a case where an investor from that state sues an individual from State B for fraud?

The correct answer is based on the understanding of diversity jurisdiction within the context of federal court access. For a federal court to hear a case based on diversity jurisdiction, there are two primary requirements that must be met: the parties must be citizens of different states, and the amount in controversy must exceed $75,000.

In this scenario, the investor from State A is suing an individual from State B, signifying that there is complete diversity between the parties, as they are citizens of different states. Furthermore, if the amount in controversy exceeds $75,000, then federal courts have subject-matter jurisdiction over the case, allowing them to hear the lawsuit.

This answer underscores the principle of diversity jurisdiction that allows federal courts to adjudicate cases involving parties from different states and sufficient monetary stakes, thereby promoting fairness and preventing local biases in state courts. Other options do not correctly capture the necessary legal standards for a federal court to entertain this case, specifically those that suggest a lack of jurisdiction or fail to acknowledge the diversity and amount requirements critical for such cases.