Allow no inbound traffic, Allow all outbound traffic and Allow instances associated with this security group to talk to each other
Allow all inbound traffic, Allow no outbound traffic and Allow instances associated with this security group to talk to each other
Allow no inbound traffic, Allow all outbound traffic and Does NOT allow instances associated with this security group to talk to each other
Allow all inbound traffic, Allow all outbound traffic and Does NOT allow instances associated with this security group to talk to each other
Explanations:
The default security group allows no inbound traffic, allows all outbound traffic, and permits instances associated with this security group to communicate with each other.
This option allows all inbound traffic, which is not the default behavior. The default security group does not permit all inbound traffic.
While this option correctly states that there is no inbound traffic and all outbound traffic is allowed, it incorrectly states that instances associated with the security group cannot communicate with each other. In fact, they can.
This option allows all inbound traffic, which is not accurate. The default security group allows no inbound traffic, despite allowing all outbound traffic.
I would say the answer is:
Allow no inbound traffic, Allow all outbound traffic and Allow instances associated with this security group to talk to each other