Correct option:
CloudHSM
AWS CloudHSM is a service for creating and managing cloud-based hardware security modules. A hardware security module (HSM) is a specialized security device that generates and stores cryptographic keys.
You should use AWS CloudHSM when you need to manage the HSMs that generate and store your encryption keys. In AWS CloudHSM, you create and manage HSMs, including creating users and setting their permissions. You also create the symmetric keys and asymmetric key pairs that the HSM stores.
Incorrect options:
KMS - If you need to secure your encryption keys in a service backed by FIPS-validated HSMs, but you do not need to manage the HSM, you should use AWS Key Management Service (KMS).
When you encrypt data, you need to protect your encryption key. If you encrypt your key, you need to protect its encryption key. Eventually, you must protect the highest level encryption key (known as a master key) in the hierarchy that protects your data. That's where AWS KMS comes in.
KMS lets you create, store, and manage customer master keys (CMKs) securely. Your CMKs never leave AWS KMS unencrypted. To use a CMK in a cryptographic operation, you call KMS.
KMS does not offer a self-managed encryption module.
S3 SSE - Server-side encryption protects data at rest. Amazon S3 encrypts each object with a unique key. As an additional safeguard, it encrypts the key itself with a master key that it rotates regularly. Amazon S3 server-side encryption uses one of the strongest block ciphers available to encrypt your data, 256-bit Advanced Encryption Standard (AES-256).
S3 SSE does not offer a self-managed encryption module.
GuardDuty - GuardDuty is a threat detection service that monitors malicious activity and unauthorized behavior to protect your AWS account. GuardDuty analyzes billions of events across your AWS accounts from AWS CloudTrail (AWS user and API activity in your accounts), Amazon VPC Flow Logs (network traffic data), and DNS Logs (name query patterns). GuardDuty cannot be used to segregate the environment your employees work in based on the department they belong to.
How GuardDuty Works:
https://aws.amazon.com/guardduty/
References:
https://docs.aws.amazon.com/cloudhsm/latest/userguide/introduction.html
https://docs.aws.amazon.com/crypto/latest/userguide/awscryp-choose-hsm.html
https://docs.aws.amazon.com/crypto/latest/userguide/awscryp-choose-kms.html
https://docs.aws.amazon.com/AmazonS3/latest/dev/UsingServerSideEncryption.html