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AWS OpsWorks facilitates application management primarily by providing configuration management stacks and layers. This service allows developers and operations teams to model their applications by defining stacks, which represent different application environments (such as development, testing, and production), and layers, which identify different components within those stacks (like web servers and application servers).

Using OpsWorks, you can automate the configuration of servers and ensure that all instances in each layer are managed consistently. This includes installing software packages, configuring servers, and deploying code. By leveraging tools like Chef or Puppet, OpsWorks allows for the automation of various processes in the application lifecycle, thus enhancing deployment velocity, standardizing deployment architectures, and improving the overall management of the application.

The other options, while related to application infrastructure and management, do not specifically represent how OpsWorks uniquely enables application management. For example, database replication, automated backup solutions, and monitoring dashboards are important aspects of a well-managed application environment, but they do not encapsulate the core functionality of OpsWorks, which focuses on configuration management and automation of application deployments.