How does Terraform handle resource dependencies?

Terraform automatically determines dependencies based on configuration references, which is a core feature that distinguishes it from manual provisioning methods. When you define resources in Terraform, it analyzes the configuration to identify relationships between them. For instance, if a virtual machine depends on a network interface, Terraform recognizes that the network interface must be created before the virtual machine.

This automatic handling of dependencies allows Terraform to build a dependency graph during the plan phase, ensuring that resources are created, modified, or destroyed in the correct order. This reduces the risk of errors and simplifies the management of complex infrastructures.

By leveraging this dependency management, users do not need to worry about specifying every individual relationship explicitly, as Terraform efficiently resolves the dependencies internally. This enhances productivity and allows for more flexible and modular configurations.

The other options misrepresent how Terraform manages dependencies and do not reflect its capabilities effectively. Specifically, requiring explicit definitions would complicate the configuration unnecessarily. A linear execution order wouldn't account for the complexities and interdependencies that exist in real-world infrastructure. Lastly, the idea that Terraform doesn't manage dependencies contradicts its fundamental operation.