What is a workspace in Terraform?

A workspace in Terraform provides a separate environment for different configurations, allowing developers to manage multiple versions of infrastructure within the same configuration directory. Each workspace has its own state file, which means changes in one workspace do not affect the others. This is particularly useful for managing different environments such as development, staging, and production, all within a single project.

By utilizing workspaces, you can easily switch between different environments while keeping the resource management organized. This feature enhances Terraform’s capability to handle infrastructure as code more effectively, maintaining clear distinctions within projects and facilitating better lifecycle management of environments.

The other options do not accurately reflect the definition or purpose of workspaces in Terraform. Grouping related resources refers to Terraform modules, while state file management is handled through backends, and commands for managing modules are part of Terraform's module system rather than its workspace feature.