The issue described is a classic case of read-heavy reporting workloads interfering with transactional application traffic. Although the RDS instance is configured for Multi-AZ, Multi-AZ deployments are designed for high availability and failover, not for scaling read performance. All reads and writes still occur on the primary instance, which explains why reporting queries negatively affect customer-facing performance.

Option C, adding an Amazon RDS read replica, is the most effective and AWS-recommended solution. Read replicas asynchronously replicate data from the primary instance and provide a separate endpoint for read-only workloads such as reporting, analytics, and dashboards. By redirecting the finance team’s reporting queries to the replica endpoint, the primary database is freed to handle transactional workloads, significantly improving overall application performance.

Option A (RDS Proxy) helps manage database connections efficiently, especially for bursty workloads, but it does not offload query execution or isolate heavy read traffic. Option B is invalid because RDS Multi-AZ does not support spreading a single DB instance across three AZs, and even if it did, it would not reduce read contention. Option D increases instance resources but does not solve the root cause; reporting queries would still compete with production traffic and would also increase cost unnecessarily.

Therefore, C is the optimal solution because it isolates reporting workloads, scales read capacity, improves application responsiveness, and aligns with AWS best practices for high-performance database architectures.