What technology allows for the creation of multiple isolated environments within a single physical infrastructure?

The correct choice is related to the concept of virtualization technology, which is instrumental in creating multiple isolated environments on a single physical infrastructure. This technology allows for the efficient utilization of hardware resources by enabling the running of multiple virtual machines (VMs) on one physical server. Each VM operates as an independent system with its own operating system and applications, effectively creating isolated environments that can function independently from one another.

This isolation is crucial for various use cases, including development and testing, where environments need to be distinct to avoid conflicts and maintain security. In cloud environments, virtualization is foundational because it supports multitenancy, where different customers' resources and applications are managed separately while sharing the same physical infrastructure, thereby enhancing scalability and resource allocation.

The other options address related concepts but do not specifically highlight the technology responsible for creating isolated environments. The cloud management plane refers to the tools and services used for managing cloud resources but does not indicate how these isolated environments are implemented. Multitenancy is a result of virtualization but not the underlying technology itself. Data encryption focuses on securing data rather than the structural isolation of environments. Thus, virtualization technology stands out as the definitive answer.