- A
Classify and label sensitive data
Correct: Core capability of Information Protection.
- B
Block external sharing of files
Why wrong: This is DLP.
- C
Detect malware in email attachments
Why wrong: This is Defender for Office 365.
- D
Apply encryption based on sensitivity labels
Correct: Labels can enforce encryption.
- E
Monitor user activities in real-time
Why wrong: This is part of Insider Risk Management or Audit.
Microsoft Purview Information Protection: Classification, Labeling, and Encryption
This SC-900 practice question tests your understanding of describe the capabilities of microsoft security solutions. Match the stated requirement to the specific cloud service, access model, or configuration option — many options are valid in isolation but not for this scenario. After answering, compare your reasoning against the explanation and wrong-answer breakdown below. Once you have made your selection, read the full explanation to reinforce the concept and understand why each distractor is designed to mislead on exam day.
Which TWO of the following are capabilities of Microsoft Purview Information Protection? (Choose two.)
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
Classify and label sensitive data
Microsoft Purview Information Protection (MIP) enables organizations to classify and label sensitive data based on content inspection and policy rules. It also applies encryption and usage restrictions directly through sensitivity labels, ensuring data is protected regardless of where it is stored or shared.
Key principle: Answer the scenario, not the keyword: identify the specific constraint before choosing the most familiar-sounding option.
Answer analysis
Option-by-option breakdown
For each option: why learners choose it and why it is or isn't the right answer here.
- ✓
Classify and label sensitive data
Why this is correct
Correct: Core capability of Information Protection.
Related concept
Read the scenario before looking for a memorised answer.
- ✗
Block external sharing of files
Why it's wrong here
This is DLP.
- ✗
Detect malware in email attachments
Why it's wrong here
This is Defender for Office 365.
- ✓
Apply encryption based on sensitivity labels
Why this is correct
Correct: Labels can enforce encryption.
Related concept
Read the scenario before looking for a memorised answer.
- ✗
Monitor user activities in real-time
Why it's wrong here
This is part of Insider Risk Management or Audit.
Common exam traps
Common exam trap: answer the scenario, not the keyword
The trap here is confusing Microsoft Purview Information Protection (which focuses on classification, labeling, and encryption) with other security solutions like DLP, Defender, or Audit, leading candidates to select options that are valid but belong to different services.
Detailed technical explanation
How to think about this question
Sensitivity labels in MIP use Azure Information Protection (AIP) to apply rights management (RMS) encryption, which enforces persistent protection even when data leaves the organization. Labels can be automatically applied via exact data match (EDM) or trainable classifiers, and they integrate with Microsoft 365 apps (Word, Excel, Outlook) to enforce visual markings and encryption at the file level.
KKey Concepts to Remember
- Read the scenario before looking for a memorised answer.
- Find the constraint that changes the correct option.
- Eliminate answers that are true in general but not in this case.
TExam Day Tips
- Watch for words such as best, first, most likely and least administrative effort.
- Review why wrong options are wrong, not only why the correct option is correct.
Key takeaway
Answer the scenario, not the keyword: identify the specific constraint before choosing the most familiar-sounding option.
Real-world example
How this comes up in practice
A cloud solutions architect for a retail company is evaluating services for a new workload. The correct answer here reflects best practice for the specific scenario described — not a general cloud recommendation. Answer the scenario, not the keyword: identify the specific constraint before choosing the most familiar-sounding option. Cloud exam questions reward reading the constraint carefully: the same technology can be right or wrong depending on the use case.
What to study next
Got this wrong? Here's your next step.
Identify which exam domain this question belongs to, review the core concept, then practise similar questions from the same domain.
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FAQ
Questions learners often ask
What does this SC-900 question test?
Describe the capabilities of Microsoft security solutions — This question tests Describe the capabilities of Microsoft security solutions — Read the scenario before looking for a memorised answer..
What is the correct answer to this question?
The correct answer is: Classify and label sensitive data — Microsoft Purview Information Protection (MIP) enables organizations to classify and label sensitive data based on content inspection and policy rules. It also applies encryption and usage restrictions directly through sensitivity labels, ensuring data is protected regardless of where it is stored or shared.
What should I do if I get this SC-900 question wrong?
Identify which exam domain this question belongs to, review the core concept, then practise similar questions from the same domain.
What is the key concept behind this question?
Read the scenario before looking for a memorised answer.
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Last reviewed: Jul 4, 2026
This SC-900 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 SC-900 exam.
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