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I'm developing a django application for one of my client, and one of the feature of this application is to conduct a multiple choice question exam with 200 questions and 800 options for them fetching from the database, and I'm thinking to deploy it on Pythonanywhere; however, I wonder if Pythonanywhere can not handle a hundreds of students logins and conducting exam at the same time.

The number of users that you can handle actually comes down to how many requests your web app can handle per second. If your users are generating 100 requests per second and your web app can handle 50, then they will experience a slowdown and possibly errors.

You can calculate how many requests you web app can handle like this: Say you have one web worker (as you would with a free account) If you average view takes 1s to process (you can see how long a view takes to process in your access log - there is a response-time field for every request). Then your web app can handle 1 request per second. However, if your average view is 0.1s, then your web app can handle 10 requests per second. You could accomplish the same effect (1 request per second -> 10 requests per second) by choosing an account that has 10 web workers.