In the IELTS test, does the word limit include articles and prepositions?

Source: Mindset for IELTS Level 2, page 12



Answer key, page 168

Is the answer to question 6 OK?

i would say it is not.

I'm quite confident that this would be marked as a correct answer, but yes, technically it's four words. In the exam, you should write State of California to be safe.