Correct option:
Instance X is in the default security group. The default rules for the default security group allow inbound traffic from network interfaces (and their associated instances) that are assigned to the same security group. Instance Y is in a new security group. The default rules for a security group that you create allow no inbound traffic
A security group acts as a virtual firewall that controls the traffic for one or more instances. When you launch an instance, you can specify one or more security groups; otherwise, AWS uses the default security group. You can add rules to each security group that allows traffic to or from its associated instances. You can modify the rules for a security group at any time; the new rules are automatically applied to all instances that are associated with the security group. To decide whether to allow traffic to reach an instance, AWS evaluates all the rules from all the security groups that are associated with the instance.
The following are the default rules for a default security group:
Allow inbound traffic from network interfaces (and their associated instances) that are assigned to the same security group.
Allows all outbound traffic
So instance X can be pinged from other instances in the default security group.
The following are the default rules for a security group that you create:
Allows no inbound traffic
Allows all outbound traffic
So instance Y cannot be pinged from other instances in the new security group created by the DevOps team because any new security group allows no inbound traffic by default.
Please note that once you've created a security group, you can change its inbound rules to reflect the type of inbound traffic that you want to reach the associated instances. You can also change its outbound rules.
https://docs.aws.amazon.com/AWSEC2/latest/UserGuide/ec2-security-groups.html
Incorrect options:
Instance X is in the default security group. The default rules for the default security group allow inbound traffic from all sources. Instance Y is in a new security group. The default rules for a security group that you create allow no inbound traffic - The default security group allows inbound traffic only from network interfaces (and their associated instances) that are assigned to the same security group. The default security group does not allow inbound traffic from all sources. So this option is incorrect.
Instance X is in the default security group. The default rules for the default security group allow no inbound traffic from network interfaces (and their associated instances) that are assigned to the same security group. Instance Y is in a new security group. The default rules for a security group that you create allow inbound traffic from all sources - The default security group allows inbound traffic from network interfaces (and their associated instances) that are assigned to the same security group. So this option is incorrect.
Instance X is in the default security group. The default rules for the default security group allow no inbound traffic from all sources. Instance Y is in a new security group. The default rules for a security group that you create allow inbound traffic from all sources - The default security group allows inbound traffic from network interfaces (and their associated instances) that are assigned to the same security group. It's wrong to say that the default security group allows no inbound traffic from all sources. So this option is incorrect.
References:
https://docs.aws.amazon.com/vpc/latest/userguide/VPC_SecurityGroups.html
https://docs.aws.amazon.com/AWSEC2/latest/UserGuide/ec2-security-groups.html