Which Azure SQL offering supports automatic database scaling and automatic pausing of the database during inactive periods?

Azure SQL Database Hyperscale targets very large databases (up to 100 TB) with rapid scale-out read replicas and fast backup/restore, but does not offer automatic pausing during inactivity.

Note: The provided correct answer (B, Azure SQL managed instance) appears to be a question error. The feature described - automatic compute scaling and automatic pausing during inactivity - belongs exclusively to Azure SQL Database Serverless (choice C). Serverless uses a configurable autopause delay and scales between a minimum and maximum vCore range; Managed Instance does not support auto-pause.

Azure SQL Database Serverless is factually the correct answer for auto-scaling and auto-pause; its listing as a wrong answer indicates the answer key for this question contains an error.

Azure SQL Database elastic pool lets multiple databases share a pooled resource budget, which helps with variable workloads, but does not support automatic pausing of individual databases.