A company notices that credentials that the company uses to connect to an external software...

Store the credentials in AWS Secrets Manager and enable rotation. Configure the API to have Secrets Manager access. This is correct. This solution will meet the requirements most securely, because it uses a service that is designed to store and manage secrets such as API credentials. AWS Secrets Manager helps you protect access to your applications, services, and IT resources by enabling you to rotate, manage, and retrieve secrets throughout their lifecycle1. You can store secrets such as passwords, database strings, API keys, and license codes as encrypted values2. You can also configure automatic rotation of your secrets on a schedule that you specify3. You can use the AWS SDK or CLI to retrieve secrets from Secrets Manager when you need them4. This way, you can avoid storing credentials in plaintext files or hardcoding them in your code.