Group policy objects enable a system administrator to manage multiple users and computers all at once by setting and enforcing key security policies at the level. individual department active directory forest, domain, and organizational unit executive

Group policy object can be applied on the OU level.

Explanation:

This whole question is ambiguous  to say the least. Group Policies can be applied the the OU (Lowest level - if you create the OU or group), the Domain and the AD Forest as long as you link the ou to the root of the AD Forest. In other words, if you wish to create a Group Policy, you also need to create an OU that you can lik it to. i.e, you want all managers to bypass the proxy settings, you create the OU, drop all the Managers in there and create the GP and apply it to the OU or group.

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