Which option allows records to be edited directly when they display as a sublist?

The option that allows records to be edited directly when they display as a sublist is known as "Allow Child Record Editing." This functionality is crucial in user interfaces where related records are presented in a sublist format, such as line items on transactions or related lists in record forms.

When this setting is enabled, users can directly modify the fields of these related records without needing to navigate away from the main record page. This capability enhances user efficiency by streamlining data entry processes and reducing the time spent switching between different forms or records.

In contrast, the other listed options pertain to different aspects of record handling or system functionality. For example, enabling inline editing allows for direct editing of certain fields in a list view, but not specifically within sublists. Optimistic locking relates to record concurrency control, ensuring that two users cannot overwrite each other's changes simultaneously. System notes track changes made to records but do not facilitate direct editing. Understanding these nuances helps clarify the functionalities of each option and why "Allow Child Record Editing" is the correct choice in this context.