import static java.lang.System.*;

[Shri Shri]

Although i got my answer right because 3 incorrect options started with "static import...", i am not clear with why option import static java.lang.System.*; is correct.

Also clear that we have to import all static elements of that class or explicitly mention the member name like
static java.lang.Integer.MAX_VALUE.

But what is significance of import static java.lang.System.*;

[admin]

Did you read the explanation given with this option -

The code uses out.println instead of System.out.println. out is a static field in java.lang.System class. That is why you need to import the static fields of java.lang.System.