[AccessD] Access Data Retrieval

I need something explained to me - this just doesn't make any sense to me
but I've had quite a few hard core vb developer's swear that the following
scenario is how Access retrieves data.

Scenario:

FE on client
BE on Server

tblLoans has 100,000 records with 3 fields

tblLoans
UniqueID - AutoNumber
LoanNo (indexed)
LastName (indexed)

You bind a form to a specified recordset such as

	"Select * from tblLoans where UniqueID = 1"

	or

	"Select * from tblLoans where LoanNo = 101"

What I have been told is that when Access goes to the server it brings ALL
the records 100,000 records back to the client and then applies criteria to
find out which record you actually asked for. So, in effect you are
returning 100,000 rows of data back to the client even though you may have
only asked for 1.

Is this correct?  If it is why is this the case and how in the world can I
ever justify using Access as a development tool to a hard core VB'r??  If
it isn't correct how can I explain in the exact scenario above the fact that
the LAN tests show mega tons (ok -technical term there...) of data being
passed back to the client when this form is called?

I'm understanding that SQL will work the same way?

Thank you so much!