Frequency and Tie-Line Power
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In an interconnected system, load-frequency control maintains system frequency near nominal and regulates scheduled real-power interchange over tie lines between control areas. Reactive power and bus voltage are primarily handled by excitation/voltage control. Therefore option B.

LFC/AGC controls frequency + real-power interchange.
Do not include reactive-power exchange as the main objective of load-frequency control.
LFC/AGC controls frequency + real-power interchange.