Do animals "live, reside or inhabit" in a place?

I am working on a standardized test, where one of the questions asks whether a certain type of animals live/reside/inhabit in Alaska. To me they all sound okay. But the answer key marks "live" as the correct answer. Any idea?

Inhabit is quite obviously wrong, because you inhabit a place—you cannot inhabit in a place.

Reside implies having a residence (i.e., a house or something like it) and living there permanently or for a long time. It sounds odd to say an animal resides somewhere, especially when the somewhere is a vast place like Alaska. A residence is a more narrowly defined area: you wouldn't likely say of a person that they reside in Alaska, either, though you might say that they reside in Juneau, and definitely that they reside in 1773 Park Drive, Juneau. (Assuming that address exists, which it probably doesn't.)

"Live," "inhabit," and "reside" all are appropriate options, "live" being the most common one, though, for animals...and humans alike.

Alternately, you can add "dwell" and "populate" to that list.

inhabit: to live or dwell in a place, as people or animals; e.g. The grizzly bear inhabits Alaska.

reside: to live in a particular place; to be present in a particular place; e.g. A quarter of the current Steller sea lion population resides in Alaska; Most of our brown bear population resides in Alaska; The wolverine also resides in Alaska, Canada, and Russia, where it is not emperiled.

dwell: to inhabit or live in; be an inhabitant of; e.g. This kind of fish dwells near the bottom of the ocean; Polar bears dwell in northern and western Alaska.

populate: to live in; inhabit; e.g. Creatures that populate the ocean depths; Brown bears populate the ALaska landscape from the bottom of the Southeast panhandle from Hyder north to Yakutat.