With Multiple Groups of Students How Should I Split Up My R-Projects & Workspaces with RStudio.Cloud?

This depends on what you mean by "group". I recommend keeping students who are exposed to the same material and assignments in a single workspace, even if the course has multiple sections (e.g. multiple lab/workshops sections but same lectures, assignments, assessments).

For different courses (covering different materials and with different assignments) use separate spaces.

I think about it as one workspace for each course I teach.