A) in a special pocket on the exterior of the canopy is the correct answer. The knife on an inflatable liferaft is required to be located in a special pocket on the exterior of the canopy. This is in accordance with the regulations set by the US Coast Guard for the equipment required on inflatable liferafts. The knife needs to be easily accessible from the outside of the liferaft in case it is needed for any emergency situations. The other options are incorrect because the first aid kit and equipment bags are not the designated location for the knife, and there should not be a cord hanging from the canopy with the knife attached to it, as that could pose a safety hazard.