Final answer:
Azure AD enables the installation of AD DS on a virtual machine in the cloud, providing traditional domain services like domain join and Group Policy as you would in an on-premises environment (option A).
Step-by-step explanation:
The feature that allows you to install AD DS (Active Directory Domain Services) on a virtual machine that is located in the cloud is A) Azure AD (Azure Active Directory). Azure AD is a cloud-based identity and access management service from Microsoft, which also allows for the integration of Active Directory Domain Services in a cloud environment using Azure virtual machines.
When you create an Azure virtual machine, you have the option to install Windows Server and then set up AD DS on that server as you would on a regular on-premises machine. This enables traditional domain services in the cloud, including domain join, Group Policy, LDAP, and Kerberos/NTLM authentication that are compatible with Windows Server Active Directory.
Hence, the answer is option A.