The correct answer is D. All of the above.
The direction of the vertical is the direction of the plumb line, which is
perpendicular to the surface of the Earth. The direction of the poles of the celestial sphere is the direction of the north and south celestial poles, which are the points in the sky directly above the north and south poles of the Earth. The direction of the star from the instrument is the direction from the instrument to the star.The observer needs to know the direction of the vertical in order to level the instrument. The observer needs to know the direction of the poles of the celestial sphere in order to orient the instrument so that it is pointing at the north and south celestial poles. The observer needs to know the direction of the star from the instrument in order to measure the position of the star in the sky.