The case study mentions "Microsoft Cloud App Security connectors configured for all supported cloud applications used by the company" , also it says "users use company provided dropbox". So, file policy can be created to delete from dropbox
NO, I think it's D. Create a DLP policy that applies to devices..
DLP policies applied to non-Microsoft apps use Microsoft Defender for Cloud Apps. When the DLP policy for a non-Microsoft app is created, the same policy will be automatically created in Microsoft Defender for Cloud Apps.
I don't think this is correct. A is still best fit for the answer. If you scope the location of a DLP policy to just Devices, then you don't get any conditions that would allow you to check if any docs have been uploaded to Dropbox. You only get "content contains, file extension is, file type is". So yes you can have a condition on the label, but no Dropbox condition, so this isn't a good fit.
Better fit is still the file policy, when you go to the "Apply to" filter you see the statement "Currently supports SharePoint, OneDrive for Business, Box, Dropbox.". You can use the built-in DLP and do a few things with it, so just seems a better fit here.
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