None of the above.
You are starting from a faulty premise. You are using the concept of function from physics, where it is just a relationship between variables defining the state of the system. But Mathcad functions come from computer science, where a function is just the specification of a calculation, a rule for calculating a number based on some set of input numbers.
A function is not a function of any particular variable(s). It is a function of its arguments. While when defining a function one must use names (simple names, not expressions of any sort) for the formal arguments, these are dummy variables in the sense that the names are irrelevant to the definition (although as a matter of sanity it is recommended that the names do have some mnemonic value). Thus the functions f(x):=x² and g(y):=y² are identical. It is not the case that f is a function of x while g is a function of y.
You cannot define a function g(f(x,y),u,v). The arguments must be simple names. Thus g could be defined as g(w,u,v). The variables w, u, and v have no relationship to any worksheet variables of the same (or similar) names. They are purely local names, that exist only in the definition. If, in actual use, w is to be a function of x and y, say w=f(x,y) then you may evaluate g as g(f(x,y),u,v). That passes to g the three values, f(x,y), the current value of u, and the current value of v. Or, for many purposes equivalently, you may define a variable w as w:=f(x,y) and then evaluate g(w,u,v).
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� � � � Tom Gutman