Final answer:
Encryption is the process of transforming private data into a secret code for secure transmission or storage, which is the correct answer out of the given options.
Step-by-step explanation:
Encryption is the process of transforming private information into a secret code. This process is used to ensure that sensitive data can be securely transmitted or stored, preventing unauthorized access or readability. Unlike encryption, decryption is the process of converting encoded or encrypted data back into its original form. Encoding, in a computing context, often refers to the preparation of data before it is encrypted or the conversion of data into a different format for use in specific processes. It should not be confused with encryption, which specifically protects data by obscuring its content. Compilation is a term used in programming that involves translating source code written in a high-level programming language into a lower-level language, such as assembly language or machine code, so that it can be executed by a computer. In the provided context, the correct answer is Option 1: Encryption.