Your network contains an Active Directory domain named contoso.com. All client computers run Windows 10
Enterprise and Microsoft Office 2013. All of the computers are joined to the domain.
Your company purchases a subscription to Office 365. An administrator creates an Office 365 account for each
user and deploys a federated solution for Office 365.
You need to prevent the users from being prompted for a user account and a password each time they access
services from Office 365.
Which account should you instruct the users to use when they sign in to their computer?
A.
a Microsoft account
B.
a local user account
C.
an Office 365 account
D.
a contoso.com account
Correct
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This is correct as it is a federated solution.
extract from TechNet link below
Federated account (federated identity) For all subscriptions in organizations with on-premises Active Directory that use single sign-on (SSO), users can sign into Office 365 services by using their Active Directory credentials. The corporate Active Directory stores and controls the password policy. For information about SSO, see Single sign-on roadmap.
https://technet.microsoft.com/en-GB/library/office-365-user-account-management.aspx
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