Answer is correct YYY
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 specified people can take on the content.
https://learn.microsoft.com/en-us/purview/sensitivity-labels
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