The correct answer is:
C. AWS Security Token Service (AWS STS)
AWS STS is the service that provides temporary security credentials. It enables you to request temporary, limited-privilege credentials for AWS Identity and Access Management (IAM) users. These credentials are ideal for users who are not typically in your AWS environment, but who need temporary access.
Incorrect options:
A. IAM policies: IAM policies define permissions for an action regardless of the method that you use to perform the operation. They don't grant temporary security credentials.
B. IAM user groups: IAM user groups are a way of organizing IAM users to assign permissions to many users at one time. However, they also do not provide temporary credentials.
D. AWS IAM Identity Center (AWS Single Sign-On): AWS Single Sign-On is a cloud SSO service that makes it easy to centrally manage SSO access to multiple AWS accounts and business applications. While it does provide a way for users to access AWS services, it doesn't provide temporary security credentials.
C. AWS Security Token Service (AWS STS)
"AWS provides AWS Security Token Service (AWS STS) as a web service that enables you to request temporary, limited-privilege credentials for users. "
https://docs.aws.amazon.com/STS/latest/APIReference/welcome.html
C is correct.
https://docs.aws.amazon.com/IAM/latest/UserGuide/id_credentials_temp.html
You can use the AWS Security Token Service (AWS STS) to create and provide trusted users with temporary security credentials that can control access to your AWS resources.
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