A hybrid archiving strategy explicitly combines both on-premises and cloud storage resources within a single, coordinated archiving approach, typically retaining highly sensitive or regulated data on-premises where the organization maintains direct physical and administrative control (often required for certain financial or regulatory compliance reasons), while leveraging cloud storage for less sensitive or lower-priority archived content to gain cost and scalability benefits. This directly and precisely matches the stated requirement of utilizing both on-premises and cloud resources together, making hybrid archiving the correct approach rather than a single-environment strategy. Archiving data entirely in the cloud (A) contradicts the explicit requirement to utilize on-premises resources as well, committing fully to one environment rather than combining both as specified. Analyzing data to determine sensitivity (B) is a valuable and often necessary preparatory classification step that would likely inform how a hybrid strategy is structured (which data goes where), but it is an analytical activity, not itself the archiving solution or option being implemented to satisfy the stated dual-environment requirement. Storing backups on local servers (D) both conflates backup with archiving, two related but distinct data protection functions, and again fails to incorporate any cloud component, directly contradicting the requirement to utilize both on-premises and cloud resources together. Hybrid archiving is correct.

Reference topic: Replication and Data Archiving - Hybrid On-Premises and Cloud Archiving.