Why does watching two literals suffice?
Answer: C
So long as two literals remain unassigned the clause is neither unit nor conflicting, so it need not be examined, and only when a watch is falsified must a replacement be sought. Determining truth requires all the literals, clause lengths vary widely, and the watches move during the search. An invariant that guarantees a data structure need not be consulted is exactly what makes lazy updating correct as well as fast.
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