The correct answer is 'An inadequate allocation of processing power for the service,' because high usage of processing capabilities often indicates that the service has been allocated insufficient resources to handle its workload. This can lead to performance issues such as slow processing times and decreased responsiveness. The terms 'processing capability' and 'service' are used instead of specific terms like 'CPU' and 'VM' in the question to avoid reusing terms from the answers. 'Network constraints' and 'high memory demand' could also impact performance, but they are less likely to cause peaks in processing capability usage. 'Inefficient coding practices' might contribute to performance issues, but they would not directly explain the indicators of high processing capability usage that has been observed.