EBS Elastic Volumes allow you to dynamically increase storage size, adjust performance, and change volume types without downtime, supporting operational efficiency and scalability for SaaS applications that need to allocate varying storage amounts to customers.

Migrating from EBS to S3 (Option A) is not suitable since S3 is object storage, not block storage, and does not support block-level I/O required by many applications. EFS (Option B) and FSx (Option C) are shared file systems, which might add unnecessary complexity and cost, especially if the application depends on block storage semantics.

Using Lambda to automate Elastic Volumes resizing provides cost efficiency by allocating resources on demand and reduces operational overhead, aligning with AWS operational excellence and cost optimization best practices.