Tente isto:
SELECT a.State, count(c.CustomerID)
FROM Product p
INNER JOIN Customer c ON c.CustomerID = p.CustomerID
LEFT JOIN Address a ON a.CustomerID = c.CustomerID
AND a.AddressID =
(
SELECT MAX(AddressID)
FROM Address z
WHERE z.CustomerID = a.CustomerID
)
WHERE p.ProductID = 101
GROUP BY a.State