Comprehensive and Detailed Explanation From Exact Extract of AWS CloudOps Documents:

The requirement is that traffic from a VPC-connected Lambda to Amazon S3 must not use public IP addresses. The AWS-native way to keep traffic private is to use VPC endpoints, which provide private connectivity to supported AWS services without traversing the public internet. Among the options, creating an S3 VPC endpoint is the only approach that satisfies “no public IP addresses” while allowing access to the bucket. Option D is the best match because it explicitly configures an S3 endpoint and directs the Lambda function to use the endpoint-specific DNS name for private routing.

Option C (NAT gateway) is incorrect for this requirement because NAT provides outbound internet access from private subnets and typically uses public IP addressing at the NAT gateway. That violates the intent to avoid public IP paths for S3 traffic. Option A is not applicable because S3 buckets are not placed “inside” a VPC and do not participate in VPC sharing in a way that provides private network paths. Option B (transit gateway) connects VPCs and on-prem networks, but it does not create private service connectivity to S3 by itself; you would still need the correct service endpoint solution for S3 access.

Using a VPC endpoint also aligns with CloudOps best practices: it reduces exposure, simplifies network egress controls, and supports least-privilege access via endpoint policies (where applicable) alongside IAM policies.