Instance principals in OCI allow compute instances to directly make API calls against OCI services without requiring a user account. To set up instance principals, the following steps are necessary: * A. Deploy the application and SDK:The application running on the instances must use the OCI SDK or CLI to make API calls. * B. Create a dynamic group:Define a dynamic group with matching rules to identify which instances can use the API permissions. * C. Create a policy:Write an IAM policy that grants the dynamic group the necessary permissions to access services. Option D is NOT necessarybecause instances in a dynamic group use instance principals to authenticate and do not require Auth Tokens, which are used for user authentication with APIs. References: * Oracle Cloud Infrastructure Documentation:Using Instance Principals