Which statement accurately describes the EUI-64 format for interface ID generation?

The EUI-64 format for generating the interface ID in IPv6 addresses is based on the device's MAC address. This method takes the 48-bit MAC address and expands it to 64 bits by inserting certain bits and modifying a portion of the MAC address. Specifically, it splits the MAC into two halves and adds the hexadecimal value "FFFE" in the middle, while also flipping the seventh bit of the first octet to indicate whether the address is universally or locally administered. This unique dependence on the MAC address allows devices to create a globally unique interface ID automatically, simplifying network configuration and enhancing address uniqueness in IPv6 networks.

In contrast, the other statements do not accurately reflect how EUI-64 functions. The format does not require manual configuration; it can be automatically derived from the MAC address. It does not use an unrelated algorithm, as the EUI-64 is specifically designed for use with hardware addresses. Lastly, there is no requirement for IPv4 compatibility in the context of EUI-64, as it is solely a method used within the IPv6 addressing scheme.