Which of the following can be processed by a hardware security module (HSM)?

A hardware security module (HSM) is a dedicated hardware device that is primarily used for managing cryptographic keys and performing cryptographic operations securely. Among its main functions are key generation, encryption, decryption, and secure key storage. Option B, physical security management, aligns well with the purpose and capabilities of an HSM. It emphasizes the secure handling and management of sensitive information, ensuring that critical security measures are physically implemented to protect data.

The other choices, while they involve aspects of security and data management, do not reflect the core functionalities of an HSM. For example, data transmission refers to the process of sending data from one point to another, while data storage optimization pertains to the strategies employed to maximize data storage efficiency. Network traffic monitoring involves analyzing data packets flowing over a network to detect suspicious activity or performance issues. These functionalities can involve security principles, but they are not core processes that an HSM is designed to handle directly. HSMs are specifically focused on cryptography and secure key management, which makes physical security management the most appropriate choice in this context.