The correct option is The data is stored raw and structure is applied only when the data is read.

The data is stored raw and structure is applied only when the data is read means that a data lake keeps the original files as they arrive and does not impose a predefined schema when data is ingested. The schema or structure is applied at query or processing time so different formats and evolving record shapes can be handled without rejecting data at ingest.

Data is encrypted on arrival to ensure confidentiality is incorrect because encryption is a security control and it does not describe when or how schema is applied. An encrypted file can be used with either schema on read or schema on write.

A strict schema is enforced at ingest which rejects records that do not match is incorrect because that describes schema on write. Schema on write requires a predefined schema at ingest and can reject or transform records that do not conform.

Metadata and a schema are automatically derived and stored when the data is loaded is incorrect because that implies the system determines and persists a schema at load time. Some systems can auto-detect schema and store metadata but that is different from schema on read which delays applying structure until the data is actually read.

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