Microsoft Defender for Cloud (formerly Azure Security Center) is specifically designed to assess regulatory compliance by continuously comparing Azure resource configurations against industry standards, regulations, and benchmarks. It provides a regulatory compliance dashboard that gives insights into compliance posture and identifies security vulnerabilities to ensure cloud environments meet regulatory requirements. The community discussion shows 100% consensus on option C, with multiple comments confirming that Microsoft Defender for Cloud is the correct service for this purpose, including references to Microsoft documentation that explicitly states its regulatory compliance assessment capabilities. Other options are less suitable: Azure Service Health focuses on service availability and health, Azure Knowledge Center is not an actual Azure service, and Azure Advisor provides general best practice recommendations but not specific regulatory compliance assessment.