Which statement holds true about the nature of a Virtual Private Network?

The statement that a Virtual Private Network (VPN) allows private communication over public networks is correct. A VPN creates a secure, encrypted tunnel between the user's device and the VPN server, which enables data to be transmitted privately across the internet. This technology is particularly useful for ensuring the confidentiality of sensitive information, as it prevents unauthorized parties, such as hackers or government entities, from intercepting or accessing the data being transmitted. By using a VPN, users can connect to public networks, such as Wi-Fi hotspots, while maintaining their privacy and security, effectively protecting their online activities from potential snooping.

The other statements do not accurately reflect the capabilities of a VPN. For instance, a VPN is designed to support multiple simultaneous connections from different devices. The physical location of devices does not limit the functionality of a VPN, as it can connect devices from anywhere in the world. Lastly, while a VPN may improve online security and privacy, it does not guarantee faster internet speeds; in many cases, it could potentially slow down the connection due to encryption overhead and routing.