You have a Microsoft 365 subscription that contains an Azure AD tenant named contoso.com. The tenant contains the users shown in the following table.
You create and assign a data loss prevention (DLP) policy named Policy1. Policy1 is configured to prevent documents that contain Personally Identifiable Information (PII) from being emailed to users outside your organization.
To which users can User1 send documents that contain PII?
User1 can send documents that contain PII to User2 and User3 only because they are members of the Azure AD tenant. Users defined as 'Guests' (User4 and User5) are considered outside the organization. Therefore, documents containing PII cannot be sent to them according to the Data Loss Prevention (DLP) policy.
User 2 and User 3 their type are member. so they are user insider your ORG.
B IS CORRECT https://www.examtopics.com/discussions/microsoft/view/48738-exam-ms-101-topic-3-question-32-discussion/
Given answer seems correct, will be appreciated if someone can explain in details