The correct option is It indicates that each developer maintains a full local replica of the repository including its entire commit history.

In a distributed version control system like Git every clone is a complete repository with all commits, branches, and tags stored on the developer machine. This full local replica lets developers commit, branch, merge, and inspect history without network access and they only need to push and pull when they want to share or integrate changes. This design provides speed and resilience because work can continue even if a central server is unavailable and history is redundantly stored across clones.

It means tasks can be easily divided among team members is incorrect because distribution here does not refer to project management or task assignment. Git supports parallel workflows but the term describes how repository data is stored and shared.

Cloud Load Balancing is unrelated to version control in Git. Load balancing concerns routing traffic across servers while distributed in Git refers to repository clones and history on each developer machine.

It means code files are shared peer to peer between users is not accurate. Git can exchange data directly between clones but the core idea is that each clone carries the complete history rather than a system of ad hoc file sharing between users.

Full AWS Practitioner Certification Question