Which of the below statements is wrong in describing the limitations of a placement group?

After setting up a Virtual Private Cloud (VPC) network, a more experienced cloud engineer suggests that to achieve low network latency and high network throughput you should look into setting up a placement group. You know nothing about this, but begin to do some research about it and are especially curious about its limitations.

Which of the below statements is wrong in describing the limitations of a placement group?
A . Although launching multiple instance types into a placement group is possible, this reduces the likelihood that the required capacity will be available for your launch to succeed.
B . A placement group can span multiple Availability Zones.
C . You can’t move an existing instance into a placement group.
D . A placement group can span peered VPCs

Answer: B

Explanation:

A placement group is a logical grouping of instances within a single Availability Zone. Using placement groups enables applications to participate in a low-latency, 10 Gbps network. Placement groups are recommended for applications that benefit from low network latency, high network throughput, or both. To provide the lowest latency, and the highest packet-per-second network performance for your placement group, choose an instance type that supports enhanced networking.

Placement groups have the following limitations:

The name you specify for a placement group a name must be unique within your AWS account.

A placement group can’t span multiple Availability Zones.

Although launching multiple instance types into a placement group is possible, this reduces the likelihood that the required capacity will be available for your launch to succeed. We recommend using the same instance type for all instances in a placement group.

You can’t merge placement groups. Instead, you must terminate the instances in one placement group, and then relaunch those instances into the other placement group.

A placement group can span peered VPCs; however, you will not get full-bisection bandwidth between instances in peered VPCs. For more information about VPC peering connections, see VPC Peering in the Amazon VPC User Guide.

You can’t move an existing instance into a placement group. You can create an AMI from your existing instance, and then launch a new instance from the AMI into a placement group.

Reference: http://docs.aws.amazon.com/AWSEC2/latest/UserGuide/placement-groups.html