A = it would cause problems in the beginning with no need because you already have something as a baseline and that’s the current set-up
B = That s it. It s a bit confusing because it states “identify the number of virtual cores and RAM associated with the application server VM”, at first, I asked myself: “but isn t this exactly what we are trying to determine here?” Yes, but the sentence is referring to the current setup, there is no other alternative than thinking the current collocated application server is a VM.
C = since there is no monitoring on the new solution over time, that would not be a good fit, and the option does not offer an automatically scaling as well
D = that s not cost effective at all

C is totally possible because you may pay extra money for custom image even if some resources is smaller that default provide config.
Dress4Win doesn't use any custom VM configurations.