Final answer:
Shoulder surfing is the security threat that doesn't use software to extract information; instead, it involves observing information physically, unlike grayware, malware, or Man-in-the-Middle exploits.
Step-by-step explanation:
The security threat that does NOT use software to extract sensitive information or credentials out of the options given is B. Shoulder surfing. Shoulder surfing refers to the practice of physically observing someone's credentials or sensitive information by looking over their shoulder, often without them being aware. This typically occurs in public places such as ATMs, coffee shops, or offices, where computer screens and keypads can be viewed by unauthorized individuals.
In contrast, Grayware is unwanted software that may cause a nuisance, Malware is malicious software designed to damage or perform unwanted actions on a computer system, and Man-in-the-Middle exploits involve intercepting communication between two systems to steal or manipulate the data being exchanged. Each of these utilizes software or software-based techniques to compromise information.