Final answer:
The OSI Presentation layer is responsible for data compression and encryption for applications.
Step-by-step explanation:
The OSI (Open Systems Interconnection) model includes several layers that handle various aspects of network communication. The layer that is specifically designed to handle compression and encryption for applications is the Presentation layer. This is the sixth layer in the seven-layer OSI model. The Presentation layer ensures that the data is in a usable format and translates data between the application layer and the network format. It serves as a translator and provides data encryption and compression to maintain data integrity and privacy during transmission.