Which scenario best describes Federation?

Federation refers to processes and protocols that allow different organizations or domains to share identity and authentication information seamlessly. In this scenario, the sharing of identity and authentication across services is fundamental to how federated systems operate. By using standards like SAML (Security Assertion Markup Language) or OAuth, users can access multiple systems or services without needing to create separate credentials for each one. This is particularly valuable in scenarios where businesses collaborate or when a service provider allows users from another system to access its resources, simplifying access and enhancing user experience.

The other scenarios do not capture the essence of federation. Managing multiple user accounts typically focuses on account configuration rather than the sharing of identity between domains. Creating complex passwords centers around enhancing security for individual accounts, while organizing user access rights is more related to access management within a single domain rather than the inter-domain trust and access that federation embodies.