To prepare Vault1 for Azure Disk Encryption with a key encryption key (KEK): 1. **You need to have a key in the Key Vault.** This will be the KEK. Azure Disk Encryption uses BitLocker for Windows VMs, which requires a key for encrypting the data disk. If you're using a KEK, the BEK (BitLocker Encryption Key) will be wrapped by this KEK. So, you should: B: Create a new key. 2. **The key vault itself should be configured for Azure Disk Encryption.** This ensures the vault is set up to work with Azure VMs and their disks. Therefore: E: Select Azure Disk Encryption for volume encryption.