Final answer:
A RESTful API is stateless, meaning each client request must contain all the necessary information to complete the request, as the server does not keep client state information. The correct answer is Option 1. This architecture simplifies server design and each interaction is independent.
Step-by-step explanation:
RESTful API, which stands for Representational State Transfer Application Programming Interface, is a stateless architecture. Being stateless means that Option 1 is correct: Each request from a client contains all the information needed to fulfill the request. The server does not retain any state about the client that might be used for subsequent requests. Each request is treated as new, with no memory of previous interactions. This design approach simplifies the server design because it does not need to keep track of the state of its interactions with the client.
Option 2 is incorrect because in a stateless API, the server does not retain information about the state of the client. Option 3 is not necessarily true for stateless architectures as authentication could be managed by tokens that don't require sending credentials with every request. Option 4 is not related to the stateless nature of RESTful APIs, as client-side data storage can occur with both stateless and stateful architectures.