No, the other file doesn't have to be in the same folder. You can specify an absolute path by modifying the formula to include the full path of the file. For example, if the file `Source.xlsx` is located in the `C:\Data` folder, you can modify the formula as follows:

```xlsx
='C:\Data[Source.xlsx]Sheet1'!$A$1:$C$10
```

Make sure to enclose the file path in single quotes and include the square brackets around the file name.
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