Step 1: Understand the scenario

Workspace1 contains a semantic model and two Power BI reports.

A Microsoft 365 Data Loss Prevention (DLP) policy (DLP1) already exists.

Requirement: Apply DLP1 to the workspace items.

In Microsoft Fabric and Power BI, DLP policies are enforced through Microsoft Purview Information Protection (MIP) sensitivity labels.

Step 2: Evaluate each option

A. Apply a master data endorsement to the semantic model.

Endorsements (promoted, certified) help users find and trust datasets but do not enforce DLP policies.

Not correct.

B. Apply a certified endorsement to the semantic model.

Certification improves discoverability and trust, but again, it does not trigger DLP policy enforcement.

Not correct.

C. Create a workspace identity.

Workspace identity (service principal) is used for connecting to external resources with managed identity.

It does not relate to DLP policy application.

Not correct.

D. Apply sensitivity labels to the semantic model and reports.

Sensitivity labels (from Microsoft Purview) integrate with Microsoft 365 DLP policies.

When sensitivity labels are applied to Power BI datasets, reports, dashboards, and workspaces, DLP1 can enforce protections such as preventing sharing or exporting sensitive data.

This is the correct answer.

Step 3: Correct Action

To apply DLP1 to Workspace1 items, you must:

Configure sensitivity labels in Microsoft Purview.

Apply those sensitivity labels to the semantic model and reports inside Workspace1.

The existing DLP1 policy will then govern data handling for those items.

References

Sensitivity labels in Power BI

Apply sensitivity labels to Power BI items

DLP policies in Microsoft Purview