RNAV allows aircraft to navigate:

On any desired flight path within the coverage of navigation sources

Correct

Only along airways defined by ground-based navaids

Only on GPS-defined routes

Only in oceanic airspace

Explanation

RNAV (Area Navigation) enables aircraft to fly any desired path using various navigation inputs (VOR/DME, DME/DME, GNSS, INS) rather than point-to-point between navaids.

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