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The key distinction is the scope of what each composition arc contributes. Sublayering composes the contents of one layer into another layer stack, bringing in the layer’s scene description as a whole. It is commonly used to combine broad workstream layers such as modeling, layout, animation, lighting, or shot overrides. Referencing , by contrast, is authored on a prim and brings scene description from an external layer, typically rooted at a selected prim or the referenced layer’s default prim. This makes references ideal for asset composition, where a model, prop, environment element, or component is introduced at a specific namespace location.

Option D is correct because it precisely captures this namespace behavior: references target and compose a prim hierarchy, while sublayers contribute all layer contents into the layer stack. Option A is incorrect because reference list operations can also be ordered and edited. Option B is misleading because composition strength is governed by USD’s LIVERPS ordering and layer-stack strength, not a simple statement that references are always stronger. Option C is incorrect because a prim can have multiple references through list editing. This aligns with Composition → Sublayers, References, Layer Stacks, Namespace Composition, and LIVERPS Strength Ordering .