True or False: Hiera data file names must match the case-sensitive format according to their matching values.

Hiera data file names must indeed match the case-sensitive format according to the values they are meant to represent. This is essential in ensuring that Hiera can properly locate and retrieve the correct data based on hierarchical lookups. Hiera is sensitive to both the name of the data files and their paths, which means that any deviation in case will lead to Hiera failing to find the expected data, ultimately resulting in incorrect configurations or defaults being applied.

This case sensitivity is particularly important when data is being organized in a structure where the naming convention reflects its hierarchy, enabling clearer management of parameters across different environments or modules. When using formats like YAML, JSON, or even custom backends, the file names must be consistently matched as per their corresponding keys or significantly risk invoicing errors during lookups.

While merits exist in other options, they do not encapsulate the broader requirement of maintaining accurate case sensitivity across all scenarios in operational use of Hiera.