A developer is incorporating AWS X-Ray into an application that handles personal identifiable information (PII).

This solution will meet the requirements by allowing the developer to control what data is sent to X-Ray and CloudWatch from the application code. The developer can filter out any PII from the trace messages before sending them to X-Ray and CloudWatch, ensuring that no PII goes outside of the EC2 instances. Option B is not optimal because it will automatically instrument all incoming and outgoing requests from the application, which may include PII in the trace messages. Option C is not optimal because it will require additional services and costs to use Amazon Macie and AWS Lambda, which may not be able to detect and hide all PII from the trace messages. Option D is not optimal because it will use Open Telemetry instead of X-Ray, which may not be compatible with CloudWatch and other AWS services.