Sublabels are simply a way to present labels to users in logical groups. Sublabels don't inherit any settings from their parent label. When you publish a sublabel for a user, that user can then apply that sublabel to content but can't apply just the parent label.
Answer D is correct:
https://docs.microsoft.com/en-us/microsoft-365/compliance/sensitivity-labels?view=o365-worldwide
With sublabels, you can group one or more labels below a parent label that a user sees in an Office app. For example, under Confidential, your organization might use several different labels for specific types of that classification. In this example, "the parent label Confidential is simply a text label with no protection settings, and because it has sublabels, it can't be applied to content." Instead, users must choose Confidential to view the sublabels, and then they can choose a sublabel to apply to content.
-Confidential
-All employees
-Anyone
Sublabels are simply a way to present labels to users in logical groups. Sublabels don't inherit any settings from their parent label. When you publish a sublabel for a user, that user can then apply that sublabel to content but can't apply just the parent label.
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