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You are absolutely correct. The reason the satellite stays in orbit and does't hurtle into space is because it, and everything in it, is in the earth's gravitational field.
When you refer to the Earth's gravitational field, how far does that extend.
And how would anyone on a satellite orbiting the Earth, actually know that they were within the field.
I mean, suppose there were people living deep inside our Earth's satellite, the Moon. These people wouldn't know the Earth existed.
If these lunar people developed Physics, would it be a different Physics from the one we have on Earth?
So, I did get the question correct, but was marked wrong.
It's a craftily-worded question. The satellite, it says, will be in a state of "zero gravity".