Which statement below regarding the difference between anonymization and pseudonymization is correct?

This statement accurately reflects the core distinction under the GDPR. Anonymization is a process of data sanitization that results in the irreversible removal of any information that could identify an individual. As stated in Recital 26 of the GDPR, once data is truly anonymized, it is no longer considered personal data and falls outside the Regulation's scope. Conversely, pseudonymization, as defined in Article 4(5), replaces direct identifiers with pseudonyms. The process is reversible because the original data can be re-linked to an individual using "additional information" that is kept separately and securely. Therefore, pseudonymized data remains personal data and is subject to the GDPR.

A. This option incorrectly reverses the definitions; anonymization is irreversible, while pseudonymization is reversible with additional information.
C. This option describes specific techniques (data masking and adding noise) rather than the fundamental, defining principles of anonymization and pseudonymization under the GDPR.

1. General Data Protection Regulation (EU) 2016/679, Article 4(5): Defines 'pseudonymisation' as "the processing of personal data in such a manner that the personal data can no longer be attributed to a specific data subject without the use of additional information, provided that such additional information is kept separately and is subject to technical and organisational measures to ensure that the personal data are not attributed to an identified or identifiable natural person". This supports the reversibility aspect of pseudonymization.

2. General Data Protection Regulation (EU) 2016/679, Recital 26: States, "The principles of data protection should therefore not apply to anonymous information, namely information which does not relate to an identified or identifiable natural person or to personal data rendered anonymous in such a manner that the data subject is not or no longer identifiable." This confirms that anonymization results in data that cannot be attributed to an individual.

3. Article 29 Data Protection Working Party, Opinion 05/2014 on Anonymisation Techniques, WP216, Page 20: "Pseudonymisation is a useful security measure, but it is not an anonymisation method. This is because pseudonymised data are still personal data... and therefore fall within the scope of the data protection framework." This document explicitly distinguishes the two concepts, confirming pseudonymization is not true anonymization because re-identification is possible.