Which of the following statements is true regarding virtual switches?

Virtual switches play a crucial role in network virtualization by facilitating communication between virtual machines (VMs) and potentially connecting to physical networks. The statement that they can operate on VLAN tags is true because virtual switches are often designed to support Virtual Local Area Networks (VLANs), which allow network segmentation and control over traffic types in a virtualized environment. This capability enables better organization and management of IP address spaces and enhances security by isolating different types of traffic.

VLAN tagging within virtual switches allows administrators to specify how traffic is handled and segregated at the data link layer, leading to improved performance and security across diverse network segments. This feature demonstrates how virtual switches can function similarly to physical switches regarding traffic management and network organization, with the added flexibility of a virtual architecture.

The other statements, while referencing realistic elements of virtual switching technology, don't encapsulate the fundamental capability of virtual switches with regards to VLANs. For example, while they do exist in software, they can also interact with physical networks through bridging and routing functions, thus showcasing their versatility beyond just operating in a purely virtual environment.