How is encryption used in Microsoft Information Protection?

Encryption in Microsoft Information Protection serves a critical role in securing sensitive information by making it inaccessible to unauthorized users. This mechanism protects data both at rest (when stored) and in transit (when being transmitted over networks), which is essential for maintaining data confidentiality and integrity.

By encrypting files and communications, unauthorized users cannot read or manipulate the information without the proper decryption keys, thereby significantly reducing the risk of data breaches and unauthorized access. This is particularly important for organizations dealing with personal data, financial information, or proprietary business information, as it helps ensure compliance with various regulations and standards regarding data protection.

The other options mentioned do not accurately represent the primary purpose of encryption within Microsoft Information Protection. While enhancing user experience or ensuring compatibility with third-party applications may be beneficial, they do not capture the fundamental security purpose of encryption in protecting sensitive information from unauthorized access.