The correct answer is latter.
- Least means the smallest in amount, extent, or significance. It does not make sense in the sentence, because the speaker is saying that they like both tea and coffee, but prefer one over the other.
- Later means at a time in the near future; soon or afterwards. It does not make sense in the sentence, because the speaker is not saying that they will prefer the second thing at a later time, but that they prefer it now.
- Last means coming after all others in time or order; final. It does not make sense in the sentence, because the speaker is not saying that they prefer the second thing as the last option, but that they prefer it over the first option.
- Latter means denoting the second or second mentioned of two people or things. In the sentence, the speaker says that they like both tea and coffee, but prefer the latter. This means that they prefer the second thing mentioned, which is coffee.
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