Explanation:

The correct order of processes before deploying a model as a service is:
(1) Data preparation # (2) Model training # (3) Model evaluation.
According to the Microsoft Azure AI Fundamentals (AI-900) official study guide and Microsoft Learn module "Explore the machine learning process", machine learning follows a structured lifecycle that involves several sequential stages. Before a model can be deployed, the data must be properly prepared, the model must be trained, and then its performance must be evaluated to ensure accuracy and reliability.
* Data Preparation:The first stage involves collecting, cleaning, and transforming raw data into a usable format. Azure Machine Learning provides tools like Data Wrangler, Data Labeling, and Data Transformation pipelines to ensure the dataset is accurate and consistent. As per Microsoft Learn, "data preparation is essential to remove noise, handle missing values, and split the dataset into training and testing sets." This step ensures the model learns from quality input.
* Model Training:In this step, algorithms are applied to the prepared training data to create a predictive model. The system learns patterns and relationships from the data. Azure Machine Learning allows model training using AutoML, custom code, or designer pipelines. The training process produces a model that can make predictions, but it still needs to be tested before deployment.
* Model Evaluation:Once trained, the model's performance is tested against unseen (test) data.
Evaluation metrics like accuracy, precision, recall, and F1-score are analyzed to verify if the model meets business and performance requirements. Microsoft Learn defines this stage as "assessing the model's performance to determine its readiness for deployment." After these three processes, the model can then be deployed as a web service using Azure Machine Learning endpoints. Model retraining happens later when new data becomes available, and data encryption is a security process, not part of model development steps.