Explanation
Avoidance halts the business process, mitigation entails using controls to reduce risk, acceptance involves taking on the risk, and transference usually involves insurance.

To monitor data in use, the DLP solution's optimal location would be on the user's client or workstation, where the data would be used or processed, and where it would be most vulnerable to access or exposure. The network perimeter is most appropriate for data in transit, and an application server would serve as middle stage between data at rest and data in use, but is a less correct answer than a user's client. A database server would be an example of a location appropriate for monitoring data at rest.

Some regulations may require specific security controls or certifications be used for hosting certain types of data or functions, and in some circumstances they may be requirements that are unable to be met by any cloud provider.