Option C is the best solution to meet the requirements with the least effort because server-side encryption with AWS KMS keys (SSE-KMS) is a feature that allows you to encrypt data at rest in Amazon S3 using keys managed by AWS Key Management Service (AWS KMS). AWS KMS is a fully managed service that enables you to create and manage encryption keys for your AWS services and applications. AWS KMS also allows you to define granular access policies for your keys, such as who can use them to encrypt and decrypt data, and under what conditions. By using SSE-KMS, you can protect your S3 objects by using encryption keys that only specific employees can access, without having to manage the encryption and decryption process yourself.

Option A is not a good solution because it involves using AWS CloudHSM, which is a service that provides hardware security modules (HSMs) in the AWS Cloud. AWS CloudHSM allows you to generate and use your own encryption keys on dedicated hardware that is compliant with various standards and regulations. However, AWS CloudHSM is not a fully managed service and requires more effort to set up and maintain than AWS KMS. Moreover, AWS CloudHSM does not integrate with Amazon S3, so you have to configure the process that writes to S3 to make calls to CloudHSM to encrypt and decrypt the objects, which adds complexity and latency to the data protection process.

Option B is not a good solution because it involves using server-side encryption with customer-provided keys (SSE-C), which is a feature that allows you to encrypt data at rest in Amazon S3 using keys that you provide and manage yourself. SSE-C requires you to send your encryption key along with each request to upload or retrieve an object. However, SSE-C does not provide any mechanism to restrict access to the keys that encrypt the objects, so you have to implement your own key management and access control system, which adds more effort and risk to the data protection process.

Option D is not a good solution because it involves using server-side encryption with Amazon S3 managed keys (SSE-S3), which is a feature that allows you to encrypt data at rest in Amazon S3 using keys that are managed by Amazon S3. SSE-S3 automatically encrypts and decrypts your objects as they are uploaded and downloaded from S3. However, SSE-S3 does not allow you to control who can access the encryption keys or under what conditions. SSE-S3 uses a single encryption key for each S3 bucket, which is shared by all users who have access to the bucket. This means that you cannot restrict access to the keys that encrypt the objects by specific employees, which does not meet the requirements.