You need to create a virtual hard disk (VHD) file that will be used to deploy Windows 7.

The solution must minimize the performance impact caused by using a VHD.

Which type of VHD should you create?

A.
Differencing disk

B.
Dynamically expanding disk

C.
Fixed-size disk

D.
Snapshot

Explanation:
Typically, you place the VHD on a second internal or external hard disk (although this is not essential). You then specify the VHD size and format settings. Microsoft recommends the default Fixed Size setting, but you can select Dynamic Expanding if you do not want to allocate the disk space. Fixed Size gives better performance and is more suitable in a production environment.