Which of the following describes how a user's public key is used during SSH authentication?

Comprehensive and Detailed Explanation From Exact Extract:

During SSH public key authentication, the server checks if the user's public key is present in the ~/.ssh/authorized_keys file. If the key is found, the server uses it to verify the user's identity by sending a challenge that can only be answered by the corresponding private key. This process does not involve password hashing or using the public key directly for encryption of the communication stream. Instead, the public key is simply used as a reference for authentication.