What type of values can variables in Terraform hold?

Variables in Terraform can hold a diverse range of data types, making option B the correct choice. Specifically, Terraform supports strings, numbers, lists, maps, and booleans as variable types. This flexibility allows for a more dynamic and modular configuration, enabling users to define complex infrastructure in a more manageable way.

Strings are used for text, numbers can represent integers or floating-point values, lists are ordered collections of values, maps allow for key-value pairs, and booleans can represent true/false states. By supporting these multiple data types, Terraform empowers users to define their configurations comprehensively, catering to various requirements and scenarios in infrastructure provisioning.

Other options are limited in their definition of variable types, failing to capture the full capabilities that Terraform offers when it comes to variable management.