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The first time you started the game, it did not exist.
Its generated when you change settings in the Options menu. (ie video, etc)
Ive heard of at least one instance where this file ended up with some bogus settings, and deleting it solved them.
If you have any special settings you make in options, you will need to make them again once you delete the game_options.txt file.
If it would make you more comfortable, try simply renaming it and if you have problems you can rename it back.
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