Developing Solutions for Microsoft Azure (AZ-204) Practice Exam 2025 - Free Azure Practice Questions and Solutions Guide

Virtual network peering is the correct method to link virtual networks in Azure. This feature allows you to connect two or more virtual networks in the same region or across regions, which enables resources in different virtual networks to communicate with each other directly. Peering offers low-latency and high-bandwidth connectivity while maintaining the isolation of the virtual networks.

When you establish a peering connection, the virtual networks retain their distinct address spaces and resource identities but can exchange traffic seamlessly as if they are part of the same network. This is particularly useful for scenarios involving multiple workloads that need to operate in separate logical domains while still sharing resources efficiently.

The other methods listed do not serve the purpose of linking virtual networks in Azure. Network address translation does not create a direct link between networks; it is a mechanism for remapping one IP address space into another. Dynamic Host Configuration Protocol is used for IP address assignment to devices on a network but does not link networks themselves. Multi-chassis link aggregation refers to a method related to linking network devices for redundancy and bandwidth management, which is not applicable within the context of Azure's virtual network architecture.