Your network contains a Hyper-V cluster named Cluster1.
You install Microsoft System Center 2012 Virtual Machine Manager (VMM).
You create a user account for another administrator named User1.
You plan to provide User1 with the ability to manage only the virtual machines that User1 creates.
You need to identify what must be created before you delegate the required permissions.
What should you identify?

A.
A cloud

B.
A service template

C.
A host group

D.
A Delegated Administrator

Explanation:
VMM uses “Host Groups” in the same way ADDS uses OUs (Organizational Units) to delegate permissions and scope.
http://technet.microsoft.com/en-us/library/gg610645.aspx

You can assign host groups to the Delegated Administrator and the Read-Only Administrator user roles to scope the user roles to specific host groups.
Members of these user roles can view and manage the fabric resources that are assigned to them at the host group level.
You can create a private cloud from resources in host groups.
When you create a private cloud, you select which host groups will be part of the private cloud.
You can then allocate all or some of the resources from the selected host groups to the private cloud.