Which of the following virtual network configuration options is BEST to protect virtual machines (VM)?

Traffic filtering controls what traffic is allowed or denied at a network boundary but does not inherently isolate VMs from one another within the same network segment, making it a complementary control rather than the best standalone protection.

Data encryption protects data confidentiality in transit or at rest but does not prevent unauthorized network access or lateral movement between VMs in the same virtual network.

Data segmentation (network segmentation) divides a virtual network into isolated segments or subnets, ensuring that if one VM or segment is compromised, attackers cannot freely move laterally to other VMs. In Azure and similar platforms, this is implemented via Virtual Network subnets, Network Security Groups (NSGs), and VNet peering controls, which enforce boundary-level protection between VM workloads and reduce the overall attack surface.

Traffic throttling limits bandwidth or connection rates to mitigate denial-of-service conditions but does not provide isolation or access control to protect VMs from unauthorized access or lateral movement.