The correct answer highlights Databricks Notebooks' ability to automatically track changes and maintain versions, facilitating easy reversion to previous states. This feature is particularly useful for scenarios where engineers need to undo changes or review past versions of their work. By linking notebooks to GitHub, Databricks syncs history with Git, allowing users to restore previous versions directly from the history panel. This process involves selecting the desired version and confirming the restoration, making it a straightforward solution for version control challenges.