The best answer is B. It replaces the original data with reference values that do not hold exploitable meaning.

Tokenization protects sensitive data by substituting the original value with a token, which is a non-sensitive reference value. The token has no meaningful value to an attacker if it is intercepted or exposed. The real sensitive data is stored separately in a protected system, often called a token vault.

This is commonly used for:

payment card data

personally identifiable information

sensitive customer records

Why the other options are incorrect:

A. It permanently deletes sensitive information from production systems.Tokenization does not necessarily delete the original data permanently. It replaces exposed operational use with tokens while the real data is retained securely elsewhere.

C. It stores sensitive data across multiple cloud environments to prevent data loss.This is unrelated to tokenization.

D. It conceals data by converting it into unreadable ciphertext using symmetric encryption.This describes encryption, not tokenization.

From a SY0-701 perspective, tokenization reduces exposure by replacing real sensitive values with non-exploitable substitutes, so B is correct.