'Retention' wins over 'deletion'. The longest configured retention period is 10 years and its corresponding action is 'Do nothing', which means the file needs to be deleted manually.
Hence, the answer is C.
https://learn.microsoft.com/en-us/microsoft-365/compliance/retention-flowchart?view=o365-worldwide <- follow this decision tree and you will end up deleting it after 10 years as another policy/label was defined with a deletion request.
Outcome: The item is retained for ten years because retention takes precedence over deletion and ten years is the longest retention period for the item. At the end of this retention period, the item is permanently deleted because of the delete action from the retention policies.
Sorry ignore above it is wrong . correct answer is D. After 10 years, the system will check if there is "any other retention policy that is configured to delete the item?". In this case it will find the other policies where deletion is configured, then it will check if that duration has passed or not, and then deletes it. So, for this qustion file will be automatically deleted after 10 years. Read the flow chart, it makes things clearer => https://learn.microsoft.com/en-us/purview/retention-flowchart?view=o365-worldwide
This question was on exam November 2023. The correct answer is D, as explained here: An item has the following retention settings applied to it:
An org-wide retention policy that deletes-only after ten years
A retention policy scoped with specific instances that retains for five years and then deletes
A retention label that retains for three years and then deletes
Outcome: The item is retained for five years because that's the longest retention period for the item. At the end of that retention period, the item is permanently deleted because of the delete action of three years from the retention label. Deletion from retention labels takes precedence over deletion from all retention policies. In this example, all conflicts are resolved by the third level.
File will be RETAINED for 10 YEARS then it will get deleted.
In other words C is NOT correct since the file wont be able to get deleted until 10 years has passed.
Check this if you dont understand how retention policies works,
https://learn.microsoft.com/en-us/microsoft-365/compliance/retention-flowchart?view=o365-worldwide
As other have stated, retention over deletion so the file is kept for 10 years.
The following link discusses order of precedence when mixing delete and retain actions:
https://learn.microsoft.com/en-us/microsoft-365/compliance/retention?view=o365-worldwide#principles-of-retention-examples-that-combine-retain-and-delete-actions
Which confirms that the delete would happen at the end of the longest retention period.
Specifically, it states:
"Deletion from retention labels takes precedence over deletion from all retention policies."
So the deletion action in Label1 (which is a retention label) would override anything set in Label2 or Label3 which are retention policies.
Correct. This clears it all up:
https://learn.microsoft.com/en-us/microsoft-365/compliance/retention?view=o365-worldwide#the-principles-of-retention-or-what-takes-precedence
Example for this first principle: An email message is subject to a retention policy for Exchange that is configured to delete items three years after they are created, and it also has a retention label applied that is configured to retain items five years after they are created.
The email message is retained for five years because this retention action takes precedence over deletion. The email message is permanently deleted at the end of the five years because of the delete action that was suspended while the retention action was in effect.
C is also not correct as "File1 will be retained until the file is deleted manually" means also that it could be deleted after 1 or so years which is not true...
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