1. NetApp, Inc. (2023). TR-4567: In-Band and Out-of-Band Key Management for NetApp Storage Encryption.
Page 5, Section "NetApp Storage Encryption": "NetApp Storage Encryption (NSE) is NetApp’s implementation of full-disk encryption (FDE) using self-encrypting drives (SEDs). The encryption engine is a hardware component of the drive, and the drive performs encryption and decryption of data as it is written to and read from the magnetic media." This supports answers A and B.
2. NetApp, Inc. (2023). ONTAP 9.13.1 Security and data encryption overview.
Section "Data-at-rest encryption": This document explicitly distinguishes between the two types of encryption. It states, "ONTAP supports two types of data-at-rest encryption: NetApp Volume Encryption (NVE) and NetApp Aggregate Encryption (NAE) are software-based... NetApp Storage Encryption (NSE) is hardware-based encryption." This confirms that NAE and NVE are software-based and thus incorrect options.