A developer is working on a Python application that runs on Amazon EC2 instances.

This solution will meet the requirements by using AWS X-Ray to enable tracing of application requests to debug performance issues in the code. AWS X-Ray is a service that collects data about requests that the applications serve, and provides tools to view, filter, and gain insights into that data. The developer can install the AWS X-Ray daemon on the EC2 instances, which is a software that listens for traffic on UDP port 2000, gathers raw segment data, and relays it to the X-Ray API. The developer can also install and configure the AWS X-Ray SDK for Python in the application, which is a library that enables instrumenting Python code to generate and send trace data to the X-Ray daemon. Option A is not optimal because it will install the Amazon CloudWatch agent on the EC2 instances, which is a software that collects metrics and logs from EC2 instances and on-premises servers, not application performance data. Option C is not optimal because it will configure the application to write JSON-formatted logs to /var/log/cloudwatch, which is not a valid path or destination for CloudWatch logs. Option D is not optimal because it will configure the application to write trace data to /var/log/xray, which is also not a valid path or destination for X-Ray trace data.