Which of the following is true about Security Groups?

The statement that Security Groups are stateful and manage traffic at the instance level is indeed accurate. Security groups act as virtual firewalls for your Amazon EC2 instances to control inbound and outbound traffic. The key characteristic of being stateful means that if an inbound request is allowed, the response is automatically allowed, regardless of outbound rules. This stateful nature simplifies the management of rules, as the system keeps track of the connection state.

Moreover, security groups operate at the instance level, meaning rules you define apply directly to the instances associated with that security group. This allows for specific management of traffic related to individual instances, which is crucial for security in cloud environments where multiple instances may have varying roles and levels of exposure.

In contrast, the remaining options have characteristics that do not accurately describe security groups. For instance, security groups are stateful, not stateless, contradicting any assertions of being stateless and applicable to subnets. Additionally, while security groups can control both inbound and outbound traffic, stating that they can only allow outbound traffic does not reflect the full capabilities they offer. Lastly, although security groups are indeed associated with a single VPC, it is more commonly stipulated that they can be linked to multiple instances within that VPC rather than being