The correct answer is A, Auto Scaling groups. Auto Scaling groups in AWS allow you to automatically adjust the number of Amazon EC2 instances in your application fleet based on incoming traffic and demand. It helps maintain performance, availability, and cost-effectiveness by scaling the capacity up or down as needed. In this scenario, since the application is experiencing latency issues due to high CPU utilization, using Auto Scaling groups will enable the company to automatically add more instances to handle increased demand and distribute the workload across multiple instances, improving application performance during peak periods.