An organization wants to apply mandatory sensitivity labels to all content generated by Microsoft 365 Copilot. The policy should inherit the highest sensitivity label of any documents referenced during a Copilot session. Which Purview feature enables label inheritance for Copilot-generated content?

B is correct because Microsoft Purview sensitivity label policies for Copilot include an option to inherit the highest sensitivity label from the documents that Copilot references when generating a response. This ensures that if a Copilot output is based on a 'Highly Confidential' document, the output inherits that label automatically. A is wrong because auto-labeling policies scan existing content (files and emails) for sensitive information and apply labels, not Copilot outputs specifically through inheritance. C is wrong because DLP policies enforce data protection actions based on label conditions, but do not assign or inherit labels themselves. D is wrong because default label policies assign a baseline label but do not dynamically inherit the highest label from referenced documents.