A 100% availability target? Good luck with that! I'd like to see the engineer who can code a service that never, ever goes down. Maybe they can also make a car that never needs gas and a toaster that never burns the bread.
I like C. Leaving room for improvement is crucial. If you hit 100% right away, where do you go from there? You need some wiggle room to keep getting better.
Option B makes sense to me. If you set the bar so high, you're almost guaranteed to fail. That's not a great way to run a service. Realistic targets are key.
A 100% availability target is simply not realistic. As the question states, the complexity and scale of modern services make that an unachievable goal. I'll go with A on this one.
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