B is the answer.
https://learn.microsoft.com/en-us/microsoft-365/compliance/sensitivity-labels?view=o365-worldwide
You can use sensitivity labels to:
- Provide protection settings that include encryption and content markings. For example, apply a "Confidential" label to a document or email, and that label encrypts the content and applies a "Confidential" watermark. Content markings include headers and footers as well as watermarks, and encryption can also restrict what actions authorized people can take on the content.
https://learn.microsoft.com/en-us/microsoft-365/compliance/sensitivity-labels?view=o365-worldwide#what-sensitivity-labels-can-do
- Mark the content when you use Office apps, by adding watermarks, headers, or footers to email, meeting invites, or documents that have the label applied. Watermarks can be applied to documents but not email or meeting invites.
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