What happens to folders that have EFS encryption when moved to a different volume?

When folders that have Encrypting File System (EFS) encryption are moved to a different volume, they keep their encryption. This means that the encryption remains intact, and users will still require the appropriate credentials to access that data even after it has been moved.

EFS is designed to maintain the security of files and folders, ensuring that only authorized users can access the sensitive information contained within them. When EFS-encrypted folders are transferred to another volume on the same machine, the integrity of the encryption remains, as the encryption keys associated with the user remain valid.

In this scenario, other options imply changes in the encryption state that do not accurately reflect how EFS operates when moving data between volumes. The specific nature of how EFS manages encryption helps safeguard data during such transfers, protecting it from unauthorized access, which reinforces the answer's correctness.