The correct answer is to set up a VPC peering connection and configure VPN encryption using a virtual private gateway in each VPC. This solution works because VPC peering provides private, low-latency connectivity between VPCs in the same region, while the VPN overlay—terminated on each VPC’s virtual private gateway—adds the required encryption for all transit traffic, meeting compliance without third-party appliances. On the AWS Certified Advanced Networking Specialty ANS-C01 exam, this scenario tests your understanding that VPC peering alone does not encrypt traffic, and that encrypting VPC peering traffic with VPN overlay is the simplest AWS-native approach; a common trap is choosing a third-party appliance or a transit gateway with unnecessary complexity. Remember the key distinction: peering handles routing, VPN handles encryption—think “peer for path, VPN for privacy.”
ANS-C01 Network Design Practice Question
This ANS-C01 practice question tests your understanding of network design. Match the stated requirement to the specific cloud service, access model, or configuration option — many options are valid in isolation but not for this scenario. After answering, compare your reasoning against the explanation and wrong-answer breakdown below. Once you have made your selection, read the full explanation to reinforce the concept and understand why each distractor is designed to mislead on exam day.
A financial services company requires that all traffic between two VPCs in the same region be encrypted in transit. The VPCs are in separate AWS accounts and use non-overlapping CIDR blocks. Which solution meets the requirement with the least operational overhead?
Clue words in this question
Noticing these words before you look at the options changes how you read each choice.
Clue: "least"
Why it matters: You want the option with minimum overhead, fewest steps, or lowest impact — not the most feature-rich or comprehensive answer.
Answer the question above first, then reveal the full breakdown to understand why each option is right or wrong.
Correct answer & explanation
✓
Set up a VPC peering connection and configure VPN encryption using a virtual private gateway in each VPC.
Option A is correct because it combines a VPC peering connection (for private, low-latency connectivity between VPCs in the same region) with VPN encryption via a virtual private gateway in each VPC. This ensures all traffic between the VPCs is encrypted in transit, meeting the compliance requirement with minimal operational overhead, as it leverages existing AWS-managed VPN capabilities without requiring additional third-party appliances or complex routing.
Key principle: Answer the scenario, not the keyword: identify the specific constraint before choosing the most familiar-sounding option.
Answer analysis
Option-by-option breakdown
For each option: why learners choose it and why it is or isn't the right answer here.
✓
Set up a VPC peering connection and configure VPN encryption using a virtual private gateway in each VPC.
Why this is correct
Provides encrypted traffic over VPC peering.
Clue confirmation
The clue word "least" in the question point toward this answer.
Related concept
Read the scenario before looking for a memorised answer.
✗
Use VPC endpoints to connect the VPCs via AWS PrivateLink.
Why it's wrong here
PrivateLink is for accessing services, not VPC-to-VPC traffic.
✗
Attach both VPCs to an AWS Direct Connect connection.
Why it's wrong here
Direct Connect does not encrypt traffic without VPN.
✗
Establish a VPC peering connection between the VPCs.
Why it's wrong here
VPC peering does not provide encryption.
Common exam traps
Common exam trap: answer the scenario, not the keyword
The trap here is that candidates often assume VPC peering alone provides encryption because it uses AWS's private network, but AWS explicitly states that VPC peering traffic is not encrypted; the exam tests whether you know that additional encryption (e.g., VPN) is required for compliance with encryption-in-transit mandates.
Detailed technical explanation
How to think about this question
The solution uses a VPC peering connection as the underlying transport, then overlays IPsecVPN tunnels between the two virtual private gateways (one in each VPC) to encrypt the traffic. This is effectively a site-to-site VPN over AWS's private network, using IKEv1 or IKEv2 for key exchange and ESP (Encapsulating Security Payload) for encryption, typically with AES-256. In practice, this setup requires careful route table entries to direct traffic through the VPN endpoints, but it avoids the complexity of managing EC2-based VPN appliances or third-party software.
KKey Concepts to Remember
Read the scenario before looking for a memorised answer.
Find the constraint that changes the correct option.
Eliminate answers that are true in general but not in this case.
TExam Day Tips
→Watch for words such as best, first, most likely and least administrative effort.
→Review why wrong options are wrong, not only why the correct option is correct.
Key takeaway
Answer the scenario, not the keyword: identify the specific constraint before choosing the most familiar-sounding option.
Real-world example
How this comes up in practice
A healthcare organisation deploys an application with a public-facing web tier and a private database tier. The database subnet has no public IP and only accepts connections from the web tier's security group. Questions like this test whether you can design cloud network isolation using VNets/VPCs, subnets, and security group rules.
What to study next
Got this wrong? Here's your next step.
Identify which exam domain this question belongs to, review the core concept, then practise similar questions from the same domain.
Network Design — This question tests Network Design — Read the scenario before looking for a memorised answer..
What is the correct answer to this question?
The correct answer is: Set up a VPC peering connection and configure VPN encryption using a virtual private gateway in each VPC. — Option A is correct because it combines a VPC peering connection (for private, low-latency connectivity between VPCs in the same region) with VPN encryption via a virtual private gateway in each VPC. This ensures all traffic between the VPCs is encrypted in transit, meeting the compliance requirement with minimal operational overhead, as it leverages existing AWS-managed VPN capabilities without requiring additional third-party appliances or complex routing.
What should I do if I get this ANS-C01 question wrong?
Identify which exam domain this question belongs to, review the core concept, then practise similar questions from the same domain.
Are there clue words in this question I should notice?
Yes — watch for: "least". You want the option with minimum overhead, fewest steps, or lowest impact — not the most feature-rich or comprehensive answer.
What is the key concept behind this question?
Read the scenario before looking for a memorised answer.
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Question Discussion
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