DP-700 Implement and Manage an Analytics Solution Practice Question
You are implementing a security strategy for Microsoft Fabric. You need to ensure that data access is restricted based on sensitivity labels and that these labels persist when data is exported to Excel. Which TWO statements describe the behavior of sensitivity labels in Fabric? (Choose TWO)
⚠ Common exam trap
Candidates often assume sensitivity labels are only for UI visibility, forgetting that they persist through exports and inherit down the data lineage chain in Fabric.
Answer choices
Why each option matters
Answer the question above first, then reveal the full breakdown to understand why each option is right or wrong.
Correct answer & explanation
✓
Labels applied to a semantic model can be automatically inherited by downstream reports.
Sensitivity labels from Microsoft Purview Information Protection are integrated into Fabric to provide end-to-end data governance. These labels help classify data and can apply encryption or watermarks that follow the data even after it leaves the service. Understanding how these labels propagate and protect data is essential for maintaining compliance in a modern analytics solution.
Answer analysis
Option-by-option breakdown
For each option: why learners choose it and why it is or isn't the right answer here.
- ✓
Labels applied to a semantic model can be automatically inherited by downstream reports.
Why this is correct
Fabric supports label inheritance, meaning that when you apply a sensitivity label to a 'parent' item like a semantic model, the 'child' reports built on that model can automatically adopt the same classification. This ensures consistent protection across the entire data lineage without requiring manual labeling of every single report. It simplifies the governance process for large-scale deployments.
- ✗
Sensitivity labels in Fabric only affect the UI color and do not provide protection.
Why it's wrong here
Labels provide much more than visual cues; they can enforce actual protection policies, including encryption and access restrictions. When properly configured in Purview, these labels ensure that only authorized users can open files, even if they are downloaded or shared outside the organization. They are a core part of the security architecture, not just a cosmetic feature.
- ✓
When data is exported from a labeled report to Excel, the label is applied to the Excel file.
Why this is correct
One of the most powerful features of Purview integration is that the protection travels with the data. If a report is marked as 'Highly Confidential,' an export to Excel will result in an Excel file with that same label and its associated protection settings. This prevents data leakage when users move information into desktop productivity tools for further analysis.
- ✗
Labels are only available for Power BI items and cannot be applied to Lakehouses.
Why it's wrong here
Microsoft Fabric has extended sensitivity label support to many item types, including Lakehouses, Warehouses, and Notebooks. This allows for a holistic approach to data classification across the entire data engineering and data science lifecycle. Limiting labels to only Power BI would leave a significant gap in the organization's overall data security and compliance posture.
- ✗
Sensitivity labels automatically delete any data that is older than three years.
Why it's wrong here
Sensitivity labels are used for classification and protection, not for data retention or lifecycle deletion policies. While Purview does offer retention labels, they are a distinct feature from the sensitivity labels used to secure and classify items in Fabric. Confusing the two can lead to incorrect data management strategies and accidental loss of important historical information.
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JA
Written and reviewed by Johnson Ajibi, MSc IT Security
Senior Network & Security Engineer · founder of Courseiva
Last reviewed September 2026 · checked against the official Microsoft exam blueprint
This DP-700 practice question is part of Courseiva's free Microsoft certification practice question bank. Courseiva provides original exam-style practice questions with explanations, topic-based practice, mock exams, readiness tracking, and study analytics to help learners prepare for the DP-700 exam.