Final answer:
Network ACLs do not filter traffic at the EC2 instance level; instead, they operate at the subnet level within AWS VPCs. Security groups are what control traffic at the EC2 instance level.
Step-by-step explanation:
The statement "A network ACL filters traffic at the EC2 instance level" is false. Network Access Control Lists (ACLs) are an additional layer of security for your VPC that act as a firewall for controlling traffic in and out of one or more subnets.
In contrast, the security groups in Amazon Web Services (AWS) are associated with EC2 instances and provide security at the instance level. While network ACLs are stateless, meaning they do not keep track of the state of network connections, security groups are stateful and automatically allow return traffic.