What is the proximity method used to create polygons around input features at a specified distance?

The proximity method used to create polygons around input features at a specified distance is known as a Buffer. This functionality involves expanding the boundaries of the input features to create new polygon shapes that represent the area within a defined distance from the original features. Buffers are particularly useful in geographic analysis for assessing the impact of a feature over a certain range, identifying areas of influence, or determining proximity to other features.

While other choices like Select Layer By Location, Generate Near Table, and Near may involve spatial relationships and measurements, they do not specifically create new polygons with defined distances from input features. Instead, those options focus on selection processes and distance calculations rather than generating buffer zones around features. Therefore, Buffer is the correct method for providing the desired spatial analysis outcome in this context.