How to configure an escalation on the workflow step that transitions the request to the "closed" status?

ANSWER
Configure an escalation on the workflow step that transitions the request to the "closed" status as follows:

If escalation is required, set up a row or multiple rows in the table to define the escalation rules as follows:

a. In the Timer column, enter the number of hours that can elapse before escalation is to triggered. These are calendar hours, not business hours.
b. In the Escalation type column, select the type of escalation to be performed.

• Email notification only – Use this option to send an email notification. If you select this option the email template must be enabled in the Assignment tab. Assignments and escalations share the same email notification and it is not possible to have escalation notifications alone, for example, you cannot have email notifications sent when escalation is done but not when the step is assigned.

• Reassignment – Use this option to reassign the task to another resource. Reassignment changes the step assignee to the new participant, who would then get a home page notification. and email notification

• Conclude – Use this option to force the workflow to continue on to the next step after the specified time frame, even if the assignee did not completed the required action. In the case of a split decision, the workflow will be considered completed or rejected, as configured by the System Administrator.

If the assignee has not completed the action within the required time frame, the step will be marked as completed or rejected depending on how your system administer has configured the default status.