During a Terraform apply, what happens to the state file?

• A. It remains unchanged
• B. During the Terraform apply, the state file is updated to reflect the planned changes
• C. It is recreated from scratch
• D. It is moved to a backup location

Answer: (B)

During a Terraform apply, Terraform updates the state file to reflect the actual resources and their attributes after provisioning. The plan outlines what will change, and once apply runs, the created, updated, or destroyed resources are recorded in the state so Terraform knows exactly what it manages for future operations. The state file isn’t left unchanged or created from scratch—the existing state is updated with the new reality. If you’re using a remote backend, the update is written there as well. Terraform may also create a local backup of the state file before applying, but the main state file itself reflects the changes.