The correct answer is Azure Active Directory Premium P1.

Azure Active Directory Premium P1 is the minimum Azure AD license that provides the Conditional Access feature set so you must have that tier to create and enforce Conditional Access policies. It includes the controls you need for policy conditions and access enforcement.

Azure Active Directory Premium P2 is not the required answer because it is a higher tier that also contains Conditional Access along with additional identity protection and governance features. It would work but it is not the minimum license required.

Office 365 Enterprise E3 is not sufficient on its own because that plan does not automatically include Azure AD Premium P1. Conditional Access requires the Azure AD premium features which must be added to the tenant.

Azure Active Directory Free is not correct because the free tier does not include Conditional Access capabilities and therefore cannot be used to configure Conditional Access policies.

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