Your network contains an Active Directory domain named contoso.com.
All users authenticate by using a third-party authentication solution.
You purchase Microsoft 365 and plan to implement several Microsoft 365 services.
You need to recommend an identity strategy that meets the following requirements:
Provides seamless SSO

Minimizes the number of additional servers required to support the solution

Stores the passwords of all the users in Microsoft Azure Active Directory (Azure AD)

Ensures that all the users authenticate to Microsoft 365 by using their on-premises user account

You are evaluating the implementation of federation.
Which two requirements are met by using federation? Each correct answer presents a complete solution.
NOTE: Each correct selection is worth one point.