Universal Containers (UC) puts a priority on this confidentially of their customers. Which Contact sharing setting should an Administrator configure to meet this request?

Setting the Organization-Wide Default (OWD) for Contacts to 'Controlled by Parent' ensures that a user's access to a Contact record is determined by their access to the associated Account. This allows for fine-grained confidentiality control, as if Account access is private, Contact access will also be private unless explicitly shared through other mechanisms.

Setting Contacts to 'Public Read/Write' would allow all users to view and modify all Contact records, which directly contradicts the goal of prioritizing confidentiality.

Setting Contacts to 'Public Read Only' would allow all users to view all Contact records, making sensitive contact information widely visible and failing to prioritize confidentiality.

While 'Private' is an OWD option for some objects, for Contacts, 'Controlled by Parent' is the standard and most effective setting to manage confidentiality in relation to their associated Accounts.