Answer: C
Option A is INCORRECT because despite instances run on a single-tenant hardware, AWS does not give visibility to sockets and cores required for reusing server bound licenses. AWS highlights this in the comparison table at the following link:
https://aws.amazon.com/ec2/dedicated-hosts/
Option B is INCORRECT because Reserved Instances are only a purchasing option and there’s no way to control the hardware where these instances are running on.
Option C is CORRECT because instances run on a dedicated hardware where AWS gives visibility of physical characteristics. AWS documentation mentions this with the following sentence:“...Dedicated Host gives you additional visibility and control over how instances are placed on a physical server, and you can consistently deploy your instances to the same physical server over time. As a result, Dedicated Hosts enable you to use your existing server-bound software licenses and address corporate compliance and regulatory requirements.”
Option D is INCORRECT because Spot Instances are only a purchasing option.
Diagram: none
References:
AWS documentation explains the possibility of reusing server bound license:
https://aws.amazon.com/ec2/dedicated-hosts/