How does a System Demo help in the evaluation of the current state of the system?

The correct choice highlights the role of a System Demo in gathering feedback from stakeholders, which is crucial for evaluating the current state of the system. During a System Demo, all completed features and functionalities are presented to stakeholders, providing an opportunity for them to interact with the system and share their insights and perspectives. This feedback is essential as it helps identify areas for improvement, validates the direction of the product development, and ensures that the work aligns with stakeholder expectations and requirements.

Additionally, while showcasing project completion, team presentations, and retrospective facilitation are important elements in a broader agile framework, they do not specifically focus on the evaluation aspect that stakeholder feedback provides. The primary objective of a System Demo is to encourage stakeholder engagement, actively involve them in the development process, and use their feedback to steer the future direction of the project, making the evaluation of the current state of the system a collaborative and iterative process.