What is the best practice for using CloudFormation to create new environments?

A company uses a complex system that consists of networking, IAM policies, and multiple three-tier applications. Requirements are still being defined for a new system, so the number of AWS components present in the final design is not known. The DevOps Engineer needs to begin defining AWS resources using AWS CloudFormation to automate and version-control the new infrastructure.

What is the best practice for using CloudFormation to create new environments?
A . Manually construct the networking layer using Amazon VPC and then define all other resources using CloudFormation.
B . Create a single template to encompass all resources that are required for the system so there is only one template to version-control.
C . Create multiple separate templates for each logical part of the system, use cross-stack references in CloudFormation, and maintain several templates in version control.
D . Create many separate templates for each logical part of the system, and provide the outputs from one to the next using an Amazon EC2 instance running SDK for granular control.

Answer: C