Which AWS service or capability should the company use to meet this requirement?

Explanations:

AWS Compute Optimizer helps users select optimal instance types for their workloads based on usage patterns but does not provide automatic scaling capabilities.

AWS Auto Scaling automatically adjusts the number of EC2 instances in response to traffic and demand, ensuring that the application can handle fluctuations efficiently.

AWS Launch Wizard is a service that simplifies the deployment of certain applications on AWS, but it does not provide automatic scaling features for compute resources.

AWS AppConfig is a service used for managing application configurations and deployments but does not relate to scaling compute resources based on demand.