Which of the following statements about full virtualization is correct?

In full virtualization, the key feature is that it simulates the entire physical hardware, allowing a virtual machine to run an unmodified guest operating system as if it were running on a physical server. This means that the virtual machine is not aware it is running in a virtualized environment, and it interacts with the virtual hardware just as it would with actual hardware.

This capability is crucial for compatibility and provides flexibility, as it allows multiple operating systems to run on the same physical machine without modification. The hypervisor plays a critical role in providing this abstraction layer, managing resources and ensuring that each virtual machine operates independently and securely.

While the efficiency of full virtualization may be a point of discussion, it primarily serves the function of providing a complete, isolated environment that mimics physical hardware, making option C the appropriate choice.