What type of resources can Terraform manage?

Terraform is designed to manage a broad range of infrastructure resources across various providers, which includes networking components, compute instances, storage solutions, and more. This comprehensive capability is one of Terraform's strongest features and supports the implementation of complete infrastructures as code. By utilizing provider plugins, Terraform can interact with APIs from cloud service providers (such as AWS, Azure, and Google Cloud), allowing users to define and provision not just virtual machines, but also security groups, load balancers, databases, and various other resource types within the cloud environment.

This multi-faceted management allows for a holistic approach to infrastructure management, where a user can orchestrate complex setups involving diverse resource types, enabling better integration and automation of cloud environments. The ability to define all resources declaratively in configuration files enhances collaboration, version control, and reproducibility, which are critical for modern infrastructure practices. Thus, the correct answer reflects Terraform’s versatility and capability in managing a wide spectrum of infrastructure resources across different providers.