The correct interpretation of "distance" in the context of gravitational pull between two objects is:
How close the two objects are located meaning that closer objects have a stronger gravitational pull than objects farther apart.
In gravitational theory, the force of attraction between two masses decreases with distance. According to Newton's law of universal gravitation, the gravitational force is inversely proportional to the square of the distance between the centers of the two masses. This means that as the distance increases, the gravitational pull decreases, and vice versa.