Which statement about Terraform workspaces is true?

• A. They require identical backend configurations
• B. Each workspace has its own state file
• C. They eliminate the need for version control
• D. They share a single state file

Answer: (B)

Terraform workspaces let you manage multiple, isolated state files for the same configuration, so you can handle different environments without duplicating code. Each workspace has its own separate state, stored in the backend, which means changes in one workspace won’t affect the others. You can see and switch between workspaces with commands like show, select, and new, with the default workspace named default and additional ones created as needed. This separation of state per workspace is what makes it possible to manage dev, staging, and prod environments independently using the same configuration.

Backends are configured once for the configuration and are shared across all workspaces in that configuration, not per workspace. Workspaces do not replace version control, and they do not share a single state file; the state is distinct per workspace.