What does the Federal Information Processing Standard (FIPS) govern?

The Federal Information Processing Standard (FIPS) is a set of standards established by the National Institute of Standards and Technology (NIST) that governs the processing of information by federal agencies, particularly in relation to computer security and data encryption. FIPS standards outline specific requirements for various aspects of information processing, including encryption algorithms, security features, and other technical specifications that ensure secure handling of sensitive federal information.

The focus of FIPS is on ensuring that information technology practices are secure and standardized across federal agencies, which is critical for protecting confidential and sensitive data. This includes establishing criteria for cryptographic modules, ensuring that they meet specific security requirements before being approved for federal use. By having these standards in place, FIPS plays a pivotal role in enhancing the security posture of information processing operations within the federal government.

In contrast, the other options relate to areas outside the core objectives of FIPS, making them less relevant in this context. Standards for educational institutions and regulations for telecommunications services do not pertain to the specific technical and security concerns addressed by FIPS, nor do guidelines for international trade agreements focus on information processing standards. Thus, option C effectively encapsulates the primary function of FIPS within the framework of federal information security and processing.