Amazon SageMaker supports encryption at rest for the ML storage volumes, the model artifacts, and the data in Amazon S3 using AWS Key Management Service (AWS KMS). AWS KMS is a service that allows customers to create and manage encryption keys that can be used to encrypt data. AWS KMS also provides an audit trail of key usage by logging key events to AWS CloudTrail. Customers can use either AWS managed keys or customer managed keys to encrypt their data. AWS managed keys are created and managed by AWS on behalf of the customer, while customer managed keys are created and managed by the customer. Customer managed keys offer more control and flexibility over the key policies, permissions, and rotation. Therefore, to meet the requirements of the company, the best option is to use customer managed keys in AWS KMS to encrypt the ML data volumes, and to encrypt the model artifacts and data in Amazon S3.

The other options are not correct because:

Option A: AWS Cloud HSM is a service that provides hardware security modules (HSMs) to store and use encryption keys. AWS Cloud HSM is not integrated with Amazon SageMaker, and cannot be used to encrypt the ML data volumes, the model artifacts, or the data in Amazon S3. AWS Cloud HSM is more suitable for customers who need to meet strict compliance requirements or who need direct control over the HSMs.

Option B: SageMaker built-in transient keys are temporary keys that are used to encrypt the ML data volumes and are discarded immediately after encryption. These keys do not provide persistent encryption or logging of key usage. Enabling default encryption for new Amazon Elastic Block Store (Amazon EBS) volumes does not affect the ML data volumes, which are encrypted separately by SageMaker. Moreover, this option does not address the encryption of the model artifacts and data in Amazon S3.

Option D: AWS Security Token Service (AWS STS) is a service that provides temporary credentials to access AWS resources. AWS STS does not provide encryption keys or encryption services. AWS STS cannot be used to encrypt the ML storage volumes, the model artifacts, or the data in Amazon S3.

Protect Data at Rest Using Encryption - Amazon SageMaker

What is AWS Key Management Service? - AWS Key Management Service

What is AWS CloudHSM? - AWS CloudHSM

What is AWS Security Token Service? - AWS Security Token Service