What statement best reflects the principle of data encryption?

Data encryption is primarily focused on the security of data by transforming it into a format that is only readable by those who possess the correct decryption key. The correct statement reflects that encryption ensures data is not accessible during transmission by converting the information into a coded format. This means that even if the data is intercepted during transmission, it would be unreadable to unauthorized users, thereby protecting the confidentiality of the data.

The other choices do not accurately describe the primary principle or function of encryption. For instance, while verification of the sender's identity is a part of secure communications, it falls more under authentication methods rather than encryption itself. Similarly, stating that encryption is only necessary for sensitive information downplays the importance of protecting all types of data in various contexts, as threats can arise regardless of the perceived sensitivity. Moreover, converting data into a format that anyone can read directly contradicts the very purpose of encryption, which is to safeguard the data from unintended access.