When the default policy for the netfilter INPUT chain is set to DROP, why should a rule allowing traffic to localhost exist?

A: All traffic to localhost must always be allowed B: It doesn’t matter; netfilter never affects packets addressed to localhost C: Some applications use the localhost interface to communicate with other applications D: syslogd receives messages on localhost E: The iptables command communicates with the netfilter management daemon netfilterd on localhost to create and change packet filter rules