The correct option is Secure disposal.

Secure disposal is an official phase in a data handling policy life cycle because it defines how data is permanently removed or rendered unrecoverable when it is no longer required. This phase ensures that retention requirements are enforced and that sensitive information cannot be recovered after the organization no longer needs it.

Gather data describes a collection activity but it is an operational task and not the specific policy phase that this question identifies. Policies may refer to collection or acquisition more formally but the option as written is not the accepted life cycle phase here.

Modify dataset is a processing or maintenance action that happens during use or update activities. It is not generally listed as a standalone life cycle phase in data handling policies.

Encrypt using Cloud Key Management Service names a specific technical control and a vendor service. Encryption is an important protection mechanism that can be used during storage or transmission but it is not itself a life cycle phase.

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