The best answer is C. Traffic will bypass inspection during a failure.
A firewall configured to fail open will allow traffic to continue flowing if the device crashes or fails. This preserves availability, but it creates a security risk because traffic may pass through without being inspected or filtered.
That means malicious traffic, unauthorized connections, or prohibited traffic could traverse the network during the outage.
Why the other options are incorrect:
A. There may be increased latency during failover.This is not the main security risk associated with fail-open mode.
B. Authentication tokens may be invalidated during an outage.This is unrelated to firewall fail-open behavior.
D. All encrypted traffic will be blocked during an outage.Fail-open does the opposite of blocking traffic; it allows traffic to pass through.
From a SY0-701 perspective, fail-open prioritizes availability, but the tradeoff is that security inspection may be bypassed, making C the correct answer.