Answer: C) Key West, the southernmost city in the United States, is located in Florida.
Explanation: when we want to introduce an explanation in a sentence (or further information about the subject), we need to place the phrase between commas. In the given sentence, the phrase "the southernmost city in the United States" is clarifying information about the subject "Key West," so the correct punctuation is the corresponding to option C: Key West, the southernmost city in the United States, is located in Florida, because it is placed between commas.