What best describes NAT masquerading?

NAT masquerading is a networking technique that enables multiple devices on a local network to share a single public IP address when accessing external networks, such as the internet. This is particularly useful for conserving public IP addresses and improving security by keeping internal network structures concealed.

In the correct answer, the concept of hiding all internal addresses behind one external address captures the essence of NAT masquerading effectively. When devices on the local network communicate with external servers, their internal IP addresses are not exposed; instead, the external server sees the requests coming from the single public IP address allocated to the NAT device (like a router). This masking helps protect internal network information and adds a layer of security against external threats.

Looking at the context of the other options, assigning multiple external addresses does not represent masquerading, as this technique specifically focuses on using one public address for many devices. The option regarding configuring private and public addresses can occur within NAT configurations, but it does not convey the hiding aspect that is central to masquerading. Finally, exposing internal addresses to the internet contradicts the purpose of NAT masquerading, which is designed to protect those internal addresses by keeping them hidden from external view.