Which of the following options outlines the benefits of working with a headless Rendering Host for Sitecore development?

Working with a headless Rendering Host for Sitecore development primarily allows developers to take advantage of modern front-end technologies while leveraging the robust content management capabilities of Sitecore. The ability to run the Rendering Host application directly in Visual Studio is significant because it streamlines the development process. This enables developers to test and debug their rendering components in a familiar environment without the need for additional deployment steps or external tools.

When the Rendering Host runs within Visual Studio, it allows for immediate changes and faster iterations, which can greatly enhance productivity and collaboration among team members. This integration further enables developers to utilize the built-in debugging features of Visual Studio and to harness the full power of the .NET development tools for a more efficient workflow.

The other option regarding all processes and functions running within a single application does not accurately represent the architecture of a headless system, which is designed to decouple the front end from the back end, emphasizing the advantages of separate applications for different functions. In a headless context, the rendering and content management aspects operate independently, which allows for greater flexibility and performance optimizations. Thus, while option B highlights an essential benefit of using a headless Rendering Host, the other statement does not align with the intended architecture of headless development.