Which statement is true regarding privileged information?

The statement that privileged information is synonymous with confidential information highlights the common understanding that privileged information is not to be disclosed without the consent of the party entitled to it. Privileged information generally includes communication between parties that is protected from disclosure to third parties, often because it relates to legal, professional, or proprietary matters.

In many contexts, particularly in legal or professional environments, the terms "privileged" and "confidential" are used interchangeably, as both refer to information that is sensitive and not meant for public dissemination. This contrasts with other options that inaccurately describe privileged information, as it is not popular knowledge, nor is it universally available to the public. Additionally, it is distinct from trade secrets, which represent specific types of confidential information with economic value, rather than a broader concept of privilege in the context of confidentiality. This differentiation is important in understanding the nuances of information classification in legal and professional settings.