Which of the following is the best way to limit the loss of confidential data if an employee's company smartphone is lost or stolen?

Installing a VPN protects data in transit over a network connection but does not secure data stored locally on a device if the device itself is lost or stolen.

Implementing location tracking helps to locate a lost device but does not prevent unauthorized access to or loss of confidential data stored on the device if it cannot be recovered.

Remote wipe functionality allows an organization to initiate a command that deletes all data, including confidential information, from a lost or stolen device. This prevents unauthorized access to sensitive company data once the device is no longer in the employee's possession, directly addressing the concern of data loss due to device compromise.

Enabling backups ensures data recovery in case of device failure, but it does not prevent confidential data from being accessed or compromised on the lost or stolen device itself.