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In a scenario where a company is transitioning from a traditional database system to Microsoft Dataverse, they need to understand the implications of data modeling within Dataverse. The company has multiple departments, each requiring specific data entities to manage their operations effectively. They are particularly interested in how relationships between entities can be established and utilized to enhance data integrity and reporting capabilities. Which of the following statements best describes the approach to creating relationships in Dataverse?
Relationships can be established using one-to-many, many-to-one, and many-to-many configurations, allowing for flexible data modeling that reflects real-world interactions between entities.
Relationships are limited to one-to-one configurations only, which simplifies the data model but restricts the representation of complex interactions.
Relationships in Dataverse can only be created through custom connectors, which adds complexity and requires additional development resources.
Relationships must be predefined in the schema and cannot be modified after the initial setup, limiting the adaptability of the data model.

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