Which virtualization method creates an isolated execution environment for applications?

Containerization is the correct answer because it involves encapsulating an application along with its dependencies in a lightweight, isolated environment called a container. This method allows for easy deployment and management since containers can run consistently across different computing environments and systems without interference from other applications. The isolation provided ensures that applications operate independently, which enhances security and resource utilization.

Application streaming, while useful for delivering applications to users without full installation on their devices, does not create a completely isolated execution environment. Virtual Desktop Infrastructure (VDI) focuses on delivering full desktop environments rather than isolating specific applications. Application virtualization involves abstracting an application from the underlying operating system, but it typically does not provide the same level of isolation and resource management that containers do. Thus, containerization stands out as the method that specifically addresses the need for an isolated execution environment for applications.