In contrast to Terraform Open Source, when working with Terraform Enterprise and Cloud Workspaces, conceptually you could think about them as completely separate working directories.
Very poorly worded question however I believe they are refering to the difference between OSS (directories) and Cloud/Ent that uses workspaces, which includes separate working directories.
https://www.terraform.io/cloud-docs/workspaces
"When run locally, Terraform manages each collection of infrastructure with a persistent working directory, which contains a configuration, state data, and variables. Since Terraform CLI uses content from the directory it runs in, you can organize infrastructure resources into meaningful groups by keeping their configurations in separate directories.
Terraform Cloud manages infrastructure collections with workspaces instead of directories. A workspace contains everything Terraform needs to manage a given collection of infrastructure, and separate workspaces function like completely separate working directories."
Answer is A:
From the doc: "Terraform Cloud manages infrastructure collections with workspaces instead of directories. A workspace contains everything Terraform needs to manage a given collection of infrastructure, and separate workspaces function like completely separate working directories."
https://www.terraform.io/cloud-docs/workspaces
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