You have a Microsoft 365 subscription with Microsoft 365 E5 licenses assigned to your users. You have created a label that applies encryption. You receive an email message with an encrypted Office document attached. You apply the label you have created to the email. 
What will happen with the attachment? 

Answer options:

A.The attachment inherits the label from the email message.
B.The attachment does not inherit the label from the email message.
C.The attachment is multi-encrypted.
D.The attachment gets corrupted.

Correct Answer: B 
You can only apply one label for each email. When you apply a label that applies encryption to an attachment that is already encrypted, the attachment will not inherit the label.Option A is incorrect. The attachment will not inherit the label.
Option C is incorrect. This is not a valid statement.
Option D is incorrect. The attachment will not be corrupted.
Reference: 
To know more about sensitivity labels, please refer to the link below: 

https://docs.microsoft.com/en-us/microsoft-365/compliance/sensitivity-labels-office-apps?view=o365-worldwide