What is called a system that is capable of detecting that a fault has occurred and has the ability to correct the fault or operate around it? 

Answer options:

A. A fail safe system
B. A fail soft system
C. A fault-tolerant system
D. A failover system

C

A fault-tolerant system is capable of detecting that a fault has occurred and has the ability to correct the fault or operate around it. In a fail-safe system, program execution is terminated, and the system is protected from being compromised when a hardware or software failure occurs and is detected. In a fail-soft system, when a hardware or software failure occurs and is detected, selected, non-critical processing is terminated. The term failover refers to switching to a duplicate "hot" backup component in real-time when a hardware or software failure occurs, enabling processing to continue. Source: KRUTZ, Ronald L. & VINES, Russel
D., The CISSP Prep Guide: Mastering the Ten Domains of Computer Security, John Wiley & Sons, 2001, Chapter 5: Security Architecture and Models (page 196).