In a federated identity management system, multiple organizations agree to trust each other to authenticate their respective users. The organization that provides the identity service acts as a trusted third party, enabling users from different organizations to access resources using the same set of credentials. The other options are not true for a third-party federated identity service.
C. The organization establishes a trust relationship with the other organizations.
Federated identity is a system that allows users from different organizations to access multiple applications with a single set of credentials. In this case, the organization using the third-party federated identity service establishes a trust relationship with the other organizations, meaning that it trusts the other organizations to authenticate their users and allow them access to the shared applications. The organization may also define internal standards for overall user identification, but it does not specify how to authenticate users from other organizations or enforce rules for their user provisioning.
B - third-party federated identity service will provide trust between other organization. Organizations are only responsible for authentication of users in their ream.
Answeri is correct
Federated identity – also known as Federated Identity Management (FIM) – works on the basis of mutual trust relationships between a Service Provider (SP) such as an application vendor and an external party or Identity Provider (IdP"
https://www.onelogin.com/learn/federated-identity
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