Which statement best describes 'DependsOn' in an Azure Resource Manager template?

'DependsOn' in an Azure Resource Manager (ARM) template is used to establish dependencies between resources. This feature is crucial when deploying Azure resources in a specific order, particularly when one resource relies on another to function correctly. For instance, if you have a virtual machine that depends on a storage account or a network interface, using 'DependsOn' ensures that the storage account or network interface is provisioned before the virtual machine is created. This prevents errors during deployment that can occur when resources are not fully ready or provisioned.

The ability to define dependencies helps to manage the deployment lifecycle effectively and allows Azure to optimize the order of resource creation, ensuring that all interdependencies are respected. This leads to a smoother deployment experience and helps in maintaining the integrity of relationships between resources in your Azure environment.