The correct answer is A. It can execute Terraform runs on dedicated infrastructure on premises or in Terraform Cloud.
The Terraform remote backend differs from other state backends like S3 or Consul in that it provides the ability to execute Terraform runs remotely on dedicated infrastructure, either in Terraform Cloud or on Terraform Enterprise (on-premises). This allows for remote plan and apply operations, unlike backends such as S3 or Consul, which are used solely for storing state files but do not handle the execution of Terraform runs.
Options B and C are incorrect:
B: The output of terraform apply can still be viewed locally even with a remote backend.
C: While certain features of Terraform Cloud require a paid subscription, the remote backend itself is available in both free and paid versions.
The remote backend is unique among all other Terraform backends because it can both store state snapshots and execute operations for HCP Terraform's CLI-driven run workflow. It used to be called an "enhanced" backend
ref
https://developer.hashicorp.com/terraform/language/settings/backends/remote
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