With the caveat that opposing answers sound obvious to different people, this answer sounded obvious to me when I heard it: The entire system, as a whole, is in

With the caveat that opposing answers sound obvious to different people, this answer sounded obvious to me when I heard it: The entire system, as a whole, is intelligent; the separate components are not. Like Vizzini, Searle has made an error common even among the intelligent, and overlooked an important possible combination of location.