You are planning to manage all of your Google Cloud resources by using Terraform.

The correct answer is B because independent applications should have independent Terraform root configurations and state boundaries. Google Cloud Terraform best practices state that to manage applications and projects independently, resources for each application and project should be placed in their own Terraform directories. This avoids a single oversized root module and reduces coupling between unrelated applications. Grouping by resource type creates artificial coupling because one application change can affect the same shared state as other applications. Putting all modules in one directory does not establish independent root configurations. A root directory per application gives clearer ownership, safer deployments, and better separation of lifecycle, state, and permissions.