You have a file server named Server1 that runs Windows Server 2012 R2.
The folders on Server1 are configured as shown in the following table.
A new corporate policy states that backups must use Windows Azure Online Backup whenever
possible.
You need to identify which technology you must use to back up Server1.
he solution must use Windows Azure Online Backup whenever possible.
What should you identify? To answer, drag the appropriate backup type to the correct location or
locations. Each backup type may be used once, more than once, or not at all. You may need to
drag the split bar between panes or scroll to view content.
Answer: 
Explanation:
http://technet.microsoft.com/en-us/library/hh831761.aspx
Azure backup will work with items that are encrypted or compressed BUT NOT BOTH. Keep an eye out for that on the test.
https://azure.microsoft.com/en-us/documentation/articles/backup-azure-backup-faq/
Picking up the link @qwe provided: https://azure.microsoft.com/en-us/documentation/articles/backup-azure-backup-faq/
“Q12. What file and folder types can I back up from my server?
A12. The following types are supported:
Encrypted
Compressed
Sparse
Compressed + Sparse
Hard Links: Not supported, skipped
Reparse Point: Not supported, skipped
Encrypted + Compressed: Not supported, skipped
Encrypted + Sparse: Not supported, skipped
Compressed Stream: Not supported, skipped
Sparse Stream: Not supported, skipped”
As @MountSwolemore said, and well, Encrypted + Compressed: Not supported, skipped. Pay attention to this on the exam…