The correct answer is 10.0.1.0/24. When creating VPC peering connections, the IP ranges (CIDR blocks) of the participating VPCs must not overlap. The development VPC uses 192.168.0.0/24, so the new VPC must use a non-overlapping CIDR block. 10.0.1.0/24 is a valid private IP range that does not overlap with 192.168.0.0/24 and is large enough to serve as a VPC network (minimum block size for a VPC is /28).

The option 192.168.0.0/24 is incorrect because it duplicates the existing CIDR block of the development VPC. Overlapping CIDR blocks are not allowed in a VPC peering connection.

The choice 10.0.1.0/32 is invalid because /32 represents a single IP address, not a valid range for a VPC. AWS requires at least a /28 block (16 IP addresses) for a VPC.

The option 192.168.1.0/32 is also invalid due to its /32 size and because it shares the same Class C private IP range as the existing VPC, increasing the chance of accidental subnetting overlap. Its also not a valid block size for a VPC.

This question is important because it tests your understanding of CIDR allocation and AWS VPC networking requirements. The key trick is to remember that VPC peering requires non-overlapping IP ranges and that the smallest valid VPC CIDR block is /28. Choosing a /24 from a different private IP range like 10.0.0.0/8 is a safe and common approach.

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