Final answer:
The incorrect statement about FOUO documents is that FOUO information is considered public and can be freely shared, which is not true since FOUO protects sensitive information that is not for public disclosure.
Step-by-step explanation:
The statement about marking FOUO documents that is incorrect is: C. FOUO information is considered public and can be freely shared with individuals outside of the organization. In reality, FOUO (For Official Use Only) markings are used to indicate sensitive but unclassified information that is not intended for public disclosure and should not be shared freely. This type of information is meant to be protected due to its potential to adversely affect the interests or security of the organization.
Documents marked as FOUO should indeed be clearly labeled with a 'FOUO' notice, as specified in option B. Furthermore, unauthorized disclosure of FOUO information may have serious consequences, including administrative or legal actions against the individual responsible for the breach as mentioned in option D. While the Freedom of Information Act (FOIA) allows for transparency and access to government records, it also provides nine exemptions concerning national security, privacy rights, trade secrets, and other sensitive issues. Information protected by FOUO markings may fall under these exemptions.