A company is building a critical data processing application that will run on Amazon EC2...

A spread placement group is designed to deploy each instance on distinct underlying hardware, reducing the risk of simultaneous failures. By spreading instances across multiple Availability Zones, you achieve high availability and fault tolerance, meeting the 99.99% uptime requirement. Spread placement groups are ideal for critical applications that require maximum resilience to single hardware failures. Neither cluster nor partition strategies offer the same guarantee of separation combined with cross-AZ distribution.

Reference Extract from AWS Documentation / Study Guide:

"Spread placement groups are recommended for applications that have a small number of critical instances that should be kept separate from each other. Instances in a spread placement group are placed on distinct underlying hardware, and when deployed across multiple Availability Zones, provide high availability."

Source: AWS Certified Solutions Architect – Official Study Guide, Compute and High Availability section; Amazon EC2 Placement Groups Documentation.