- A
Install Terraform on the existing instance, run terraform init and apply directly to manage it, and store state locally. Have team members share the state file via a shared folder.
Why wrong: Local state is not collaborative and sharing via folder can cause corruption.
- B
Write Terraform configuration from scratch to match the existing instance, but do not import; instead, destroy the old instance and recreate it with Terraform.
Why wrong: Destroying production resources without importing causes downtime and is risky.
- C
Create separate Git branches for each environment (dev, staging, prod) and have each team member work independently on their branch, merging occasionally.
Why wrong: Separate branches without proper merging leads to configuration drift and no single source of truth.
- D
Create a Git repository with a main branch. Write a minimal Terraform configuration that describes the existing EC2 instance. Use terraform import to bring the instance under Terraform management. Store the state file remotely in S3 with DynamoDB locking. Set up a CI pipeline that runs terraform plan on pull requests and requires approval before merging.
This approach imports existing infrastructure, uses remote state for team access, and enforces code review through PRs.
Quick Answer
The correct answer is the approach that combines a minimal Terraform configuration, `terraform import`, remote state with S3 and DynamoDB locking, and a CI pipeline with plan-on-PR and approval gates. This is the best course of action because it directly addresses the team’s need for a gradual Terraform adoption strategy: starting small by importing the existing single EC2 instance without downtime, then enabling safe collaboration through remote state locking, and finally enforcing code review via CI. On the HashiCorp Terraform Associate TF-003 exam, this scenario tests your understanding of the recommended workflow for teams—specifically the import workflow, state management best practices, and integrating Terraform with version control and CI/CD. A common trap is to skip the import step and attempt to recreate infrastructure manually, which risks downtime or configuration drift. Remember the memory tip: “Import first, lock state, plan on PR, then apply.”
TF-003 Understand IaC concepts Practice Question
This TF-003 practice question tests your understanding of understand iac concepts. This is a configuration task: choose the command set that satisfies every stated requirement. Small differences — like 'secret' vs 'password' or 'transport input ssh' vs 'all' — change whether the answer is correct. 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.
You are a DevOps engineer at a growing startup. The infrastructure currently consists of a single AWS EC2 instance running a web application, manually configured. The company plans to scale to multiple instances and environments (development, staging, production). They want to adopt Infrastructure as Code using Terraform. The team has limited experience with Terraform and wants to start small, then gradually adopt more advanced features. The current manual infrastructure must be imported into Terraform. The team also wants to ensure that code changes are reviewed via pull requests before being applied. Which of the following is the best course of action to meet these requirements?
Clue words in this question
Noticing these words before you look at the options changes how you read each choice.
Clue:
"best"Why it matters: Signals that multiple options may be partially correct. Choose the option that most directly solves the exact problem described, not the one that sounds most complete.
Answer choices
Why each option matters
Answer the question above first, then reveal the full breakdown to understand why each option is right or wrong.
Correct answer & explanation
Create a Git repository with a main branch. Write a minimal Terraform configuration that describes the existing EC2 instance. Use terraform import to bring the instance under Terraform management. Store the state file remotely in S3 with DynamoDB locking. Set up a CI pipeline that runs terraform plan on pull requests and requires approval before merging.
Option D is correct because it follows the best practices for adopting Infrastructure as Code with Terraform in a team setting. It starts by writing a minimal configuration that matches the existing EC2 instance, uses `terraform import` to bring it under management without downtime, stores state remotely in S3 with DynamoDB locking for collaboration and consistency, and sets up a CI pipeline to run `terraform plan` on pull requests with approval gates, ensuring code review before changes are applied.
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.
- ✗
Install Terraform on the existing instance, run terraform init and apply directly to manage it, and store state locally. Have team members share the state file via a shared folder.
Why it's wrong here
Local state is not collaborative and sharing via folder can cause corruption.
- ✗
Write Terraform configuration from scratch to match the existing instance, but do not import; instead, destroy the old instance and recreate it with Terraform.
Why it's wrong here
Destroying production resources without importing causes downtime and is risky.
- ✗
Create separate Git branches for each environment (dev, staging, prod) and have each team member work independently on their branch, merging occasionally.
Why it's wrong here
Separate branches without proper merging leads to configuration drift and no single source of truth.
- ✓
Create a Git repository with a main branch. Write a minimal Terraform configuration that describes the existing EC2 instance. Use terraform import to bring the instance under Terraform management. Store the state file remotely in S3 with DynamoDB locking. Set up a CI pipeline that runs terraform plan on pull requests and requires approval before merging.
Why this is correct
This approach imports existing infrastructure, uses remote state for team access, and enforces code review through PRs.
Clue confirmation
The clue word "best" in the question point toward this answer.
Related concept
Read the scenario before looking for a memorised answer.
Common exam traps
Common exam trap: answer the scenario, not the keyword
HashiCorp often tests the misconception that you must destroy and recreate infrastructure to adopt IaC, or that local state sharing is acceptable for teams, when in fact `terraform import` and remote state with locking are the correct approaches for zero-downtime adoption and collaboration.
Detailed technical explanation
How to think about this question
Terraform's `import` command maps existing infrastructure to a resource block in state, but it does not generate HCL configuration; the engineer must write the configuration manually to match the imported resource's attributes. Remote state in S3 with DynamoDB locking uses the `terraform_remote_state` data source and `dynamodb_table` for state locking, preventing concurrent writes and ensuring consistency. A CI pipeline that runs `terraform plan` on pull requests outputs a human-readable diff, and requiring approval before merging enforces the principle of least privilege and change review.
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 practitioner preparing for the TF-003 exam encounters this exact type of scenario on the job. The correct answer here is not the most general option — it is the best answer for the specific constraint described. Answer the scenario, not the keyword: identify the specific constraint before choosing the most familiar-sounding option. Real exam questions reward reading the full scenario before eliminating options, because the constraint defines which answer fits.
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.
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Understand IaC concepts — study guide chapter
Learn the concepts, then practise the questions
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Understand IaC concepts practice questions
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FAQ
Questions learners often ask
What does this TF-003 question test?
Understand IaC concepts — This question tests Understand IaC concepts — Read the scenario before looking for a memorised answer..
What is the correct answer to this question?
The correct answer is: Create a Git repository with a main branch. Write a minimal Terraform configuration that describes the existing EC2 instance. Use terraform import to bring the instance under Terraform management. Store the state file remotely in S3 with DynamoDB locking. Set up a CI pipeline that runs terraform plan on pull requests and requires approval before merging. — Option D is correct because it follows the best practices for adopting Infrastructure as Code with Terraform in a team setting. It starts by writing a minimal configuration that matches the existing EC2 instance, uses `terraform import` to bring it under management without downtime, stores state remotely in S3 with DynamoDB locking for collaboration and consistency, and sets up a CI pipeline to run `terraform plan` on pull requests with approval gates, ensuring code review before changes are applied.
What should I do if I get this TF-003 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: "best". Signals that multiple options may be partially correct. Choose the option that most directly solves the exact problem described, not the one that sounds most complete.
What is the key concept behind this question?
Read the scenario before looking for a memorised answer.
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Last reviewed: Jun 30, 2026
This TF-003 practice question is part of Courseiva's free HashiCorp certification practice question bank. Courseiva provides original exam-style practice questions with explanations, topic-based practice, mock exams, readiness tracking, and study analytics to help learners prepare for the TF-003 exam.
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