Your organization uses Azure Information Protection labels. You now want to enable Sensitivity Labels for Office files in Sharepoint and OneDrive to use new features. You want to be able to use your existing labels with Azure Information Protection across Microsoft apps and services.What should you do?

Answer options:

A.In Microsoft 365 Information Protection - enable sensitivity labels.
B.In Microsoft 365 Information Protection – create a Label Policy.
C.Migrate the Azure Information Protection labels to sensitivity labels.
D.Delete the Azure Information Protection labels and recreate them.

Correct Answer: C 
You must migrate the Azure Information Protection labels to sensitivity labels so that you can enable new features for new files that you upload. Migrate Azure Information Protection labels to the unified labeling platform so that you can use them as sensitivity labels by clients and services that support unified labeling. 

Option A is incorrect. You must migrate the Azure Information Protection labels to sensitivity labels.
Option B is incorrect. Label policies are used to publish one or more labels to your users` Office apps. Therefore not the correct answer.
Option D is incorrect. Recreating the Azure Information Protection labels will not let you use the new features for new files that you upload. You must first migrate the Azure Information Protection labels to sensitivity labels.
Reference: 
To know more about migrating Azure Information Protection labels, please refer to the link below: 

https://docs.microsoft.com/en-us/azure/information-protection/configure-policy-migrate-labels