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Salesforce Certified Administrator · Salesforce
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This is documented at here: https://help.salesforce.com/s/articleView?id=sf.dashboard_filters_overview.htm&type=5 In Unlimited and Performance editions, Lightning dashboard components are now called widgets. For example, filters for a Global Sales Overview dashboard can allow users to visualize results for individual sales regions.
It asks for different reports on dashboard based on the region the VP wants, using dynamic dashboard VP can see from all regions but by using filters VP can view reports for each region seperately.
On the contrary, I agree with BTS because it mentions "data by region within his territory" -- this is only possible if it's a dynamic dashboard.