Hmm, I'm not sure about that. Shouldn't we be looking at mutual server authentication with SSL certificates? That's the classic security mechanism for this kind of integration.
Option B seems like the way to go here. Configuring a connected app with OAuth settings is a robust and secure way to integrate with the Azure API Gateway.
I think option A is the best choice because it ensures secure communication between Northern Trail Outfitters and the external Microsoft Azure API Gateway.
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