Design a highly available Azure SQL database that must (1) fail over between replicas without any data loss, (2) remain available in the event of a zone outage, and (3) minimize costs. Which deployment option should you use?

Azure SQL Database Premium is the correct choice because it offers zone-redundant high availability, ensuring no data loss during failover and continued operation during a zone outage. This tier uses multiple synchronous replicas across availability zones. While Business Critical also provides similar availability features, Premium is generally more cost-effective for many workloads that require these specific high availability guarantees without the full feature set and higher cost of Managed Instance. Standard and Serverless tiers do not inherently provide zone-redundant high availability with synchronous replicas to prevent data loss during a zone outage.