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Option C best satisfies the requirement for rapid, correlated detection of model-related performance degradation. Amazon CloudWatch Application Insights provides automated observability across application components running on Amazon EC2, identifying abnormal behavior patterns without requiring extensive manual configuration.

Using custom metrics for recommendation quality, token usage, and response latency allows the company to directly monitor FM behavior, not just infrastructure health. Applying dimensions such as request type and user segment enables fine-grained correlation between performance issues and specific customer interactions or workloads.

CloudWatch anomaly detection is critical because it establishes dynamic baselines from historical data and detects deviations automatically. This enables alerts to be generated within minutes when FM behavior changes unexpectedly, satisfying the 10-minute alerting requirement without static thresholds that can miss subtle degradations.

CloudWatch Logs Insights complements metrics by enabling rapid analysis of log patterns, error messages, or unusual request flows associated with degraded recommendations. Because all data remains within CloudWatch, correlation between metrics, logs, and alerts is straightforward and operationally efficient.

Option A focuses on infrastructure metrics and lacks behavioral baselining. Option B provides tracing but not automated anomaly detection. Option D adds significant operational overhead and ingestion complexity for a use case already well supported by CloudWatch-native features.

Therefore, Option C delivers the most effective, scalable, and low-overhead observability solution for detecting FM-related performance deviations.

The correct combination is B and C because together they address both workload diversity and hybrid deployment requirements with minimal custom engineering.

Option B provides consistent, high-throughput access by configuring provisioned throughput in Amazon Bedrock. Provisioned throughput guarantees predictable capacity and performance, which is essential for batch processing workloads that require sustained inference rates. This eliminates cold starts and throttling concerns that can occur with purely on-demand usage, making it well suited for high-volume enterprise workloads.

Option C enables hybrid deployment across cloud and on-premises environments by deploying foundation models to Amazon SageMaker AI endpoints and using Amazon SageMaker Neo for edge and on-premises optimization. SageMaker Neo compiles models for target hardware, allowing inference to run efficiently outside the AWS cloud while still using AWS-managed tooling. Orchestrating these deployments with AWS Lambda allows consistent invocation patterns across environments.

Option A uses asynchronous endpoints, which are not suitable for real-time, low-latency inference. Option D addresses scaling but does not support on-premises or hybrid deployment. Option E simplifies model onboarding but does not address hybrid execution or guaranteed throughput.

Therefore, Options B and C together provide real-time and batch support, predictable performance, and true hybrid deployment while minimizing operational overhead.

Option C is the correct solution because it directly addresses both correctness and performance issues by grounding the model’s responses in authoritative product data using Retrieval Augmented Generation. Amazon Bedrock Knowledge Bases are designed to connect foundation models to trusted enterprise data sources, ensuring that generated responses are constrained to known, validated content.

By ingesting the product catalog into a knowledge base, the GenAI application retrieves only products that actually exist in the catalog. This prevents hallucinated or unavailable recommendations, which is a common issue when models rely solely on prompt instructions without retrieval grounding. RAG ensures that the model’s output is based on retrieved facts rather than learned generalizations.

Setting the PerformanceConfigLatency parameter to optimized enables Bedrock to prioritize lower-latency retrieval and inference paths, improving responsiveness for real-time recommendation scenarios. This directly addresses the reported performance issues without requiring provisioned throughput or caching strategies that are ineffective for mostly unique interactions.

Option A improves safety and latency predictability but does not ensure recommendations are limited to valid products. Option B relies on prompt constraints, which are not sufficient to prevent hallucinations. Option D introduces additional validation and caching layers but increases complexity and does not improve generation relevance.

Therefore, Option C best resolves both relevance and latency challenges using AWS-native, low-maintenance GenAI integration patterns.

Option C is the correct solution because it uses Amazon Bedrock cross-Region inference profiles, which are explicitly designed to support regional data residency, private connectivity, and resilience with minimal operational overhead.

By using a Europe-scoped inference profile, the application ensures that all inference requests are routed only within European Regions where the FM is deployed, such as eu-central-1 and eu-west-3. This satisfies data residency requirements while still providing resilience and load distribution across Regions.

Configuring an Amazon Bedrock VPC endpoint ensures that all traffic remains on the AWS private network. No public endpoints are used, which aligns with the company’s private networking requirements.

Extending existing SCPs to allow inference profile usage ensures that employees can access the FM only in approved Regions, maintaining governance across the Control Tower environment.

Options A and B introduce unnecessary custom routing layers and EC2 management. Option D moves away from Amazon Bedrock entirely and increases operational complexity.

Therefore, Option C is the only solution that satisfies private access, regional confinement, governance controls, and low operational overhead.