Which of the following statements is true about Terraform variable names and the state file?

The statement that Terraform variable names are saved in the state file is true because the state file is designed to keep track of the infrastructure managed by Terraform, including any input variable values that were used during the provisioning of resources. When resources are created or updated, Terraform stores the current configuration and state of those resources in the state file, which is critical for maintaining the desired state of the infrastructure.

In this context, variable names can be included in the state file, especially when they impact the infrastructure being managed or if default values are used during resource creation. This capability facilitates better infrastructure management by ensuring that Terraform can reference those variable values during future runs, enabling consistent and predictable deployments.

The other statements lack accuracy. While Terraform does utilize configuration files for variables (which are in text format), the variable names themselves are not stored in a separate text file as outlined in one option. Variables are not lost after execution; they can be retained and reused in future runs or can have default values assigned. Furthermore, Terraform does allow for the reuse of variable names within different modules and configurations, provided they are scoped correctly.