How should a SysOps administrator configure the Auto Scaling group to meet these requirements?

Explanations:

Scaling based on events is not a standard configuration for Auto Scaling in response to CPU utilization. Events typically pertain to notifications or external triggers rather than directly measuring and reacting to performance metrics.

Scaling based on a schedule does not dynamically respond to current CPU utilization. This option would scale instances at predetermined times, which does not align with the requirement of scaling out as CPU utilization rises above 50%.

Configuring the Auto Scaling group to scale dynamically based on demand allows it to monitor CPU utilization and automatically add instances when the average CPU utilization exceeds the specified threshold of 50%. This meets the requirement effectively.

Predictive scaling forecasts future demand based on historical data and adjusts the capacity accordingly. While it can be useful, it does not directly address immediate scaling needs based on current CPU utilization levels like the requirement specifies.