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The correct answer indicates that MARSA (Medium Altitude Refueling Systems Authorization) ends when the tanker advises Air Traffic Control (ATC) that they are vertically positioned. This procedure is essential in military air operations, as it ensures that the aircraft involved in the refueling are actively communicating their positions to maintain safety and coordination. When the tanker announces that it is vertically positioned, it signals that the receivers are no longer reliant on the tanker for their altitude or course adjustments, allowing ATC to manage both aircraft appropriately and thus ending the MARSA phase.

This designation is critical because it establishes a clear protocol for communication and separation of aerial maneuvers. This allows for an organized transition back to normal air traffic control procedures after the specialized requirements of the refueling operation have been concluded. Other options, such as the timing of the receiver reaching a certain distance or completing the refueling process, are relevant but do not specifically denote the formal end of MARSA as defined by operational protocols.