How far must a pilot be from the cloud when flying VFR in Class E airspace?

In Class E airspace, when flying under Visual Flight Rules (VFR), pilots are required to maintain a certain distance from clouds to ensure that they can see and avoid them, enhancing safety during flight. The correct guidelines specify that a pilot must remain at least 500 feet below a cloud and at least 1,000 feet above a cloud. This requirement is put in place to ensure that pilots have a clear line of sight and can navigate safely without unwittingly entering instrument conditions, which would necessitate flying by reference to instruments rather than visually.

Maintaining these altitudes allows for a buffer zone between the aircraft and the cloud, thus reducing the chance of inadvertent encounters that could lead to loss of control or other hazardous situations. This regulation aids in the effective management of air traffic in areas where visibility may be affected by cloud cover.

The other options do not align with the established VFR distance requirements for Class E airspace: the 500 feet below and 1,000 feet above rule is the standard set forth by aviation authorities, ensuring pilots have adequate separation from cloud formations.