Rationale for Correct Answer:Terraform detects drift by refreshing state during terraform apply. Since the VM no longer exists but is still declared in configuration, Terraform will plan and recreate the missing resource.

Analysis of Incorrect Options (Distractors):

B. Error: Terraform treats this as drift, not an error.

C. Remove from state: Terraform does not remove resources automatically unless instructed.

D. No changes: Incorrect because drift is detected and corrected.

Key Concept:Terraform enforces the desired state defined in configuration, correcting drift automatically.