What type of network uses tunneling to encrypt data?

A Virtual Private Network (VPN) is specifically designed to create a secure and encrypted connection over a less secure network, often the internet. Tunneling is a method used within VPNs to encapsulate and encrypt the data being transmitted between two endpoints. This enhances security by allowing data packets to be sent through the tunnel, preventing anyone outside the tunnel from intercepting or understanding the encrypted data.

In contrast, a Local Area Network (LAN) connects computers and devices in a limited area, like a home or office, typically not employing tunneling. A Wide Area Network (WAN) covers larger geographic areas and may consist of multiple LANs, without necessarily using encryption or tunneling methods. Similarly, a Metropolitan Area Network (MAN) spans a city or campus and may also not require the same level of encryption as a VPN, as it primarily connects several LANs over a city. Therefore, the defining characteristic of the VPN involves its use of tunneling and encryption to secure data, making it the correct answer in this context.