Which provisioning option allows the assignment of licenses to Office 365 users?

The option that enables the assignment of licenses to Office 365 users is Okta provisioning for Directory-mastered users. This provisioning method integrates directly with Microsoft’s systems to manage user accounts, and it specifically allows for the assignment, modification, and deactivation of licenses based on the user attributes and roles defined within the Okta directory.

When an organization uses Okta as the identity provider (IdP) with Directory-mastered users, it allows for centralized control over users, their licenses, and other attributes, streamlining the management process significantly.

This approach is particularly beneficial for organizations that utilize Office 365 because it ensures that users have the correct licenses based on their role or status within the organization, optimizing user access to necessary resources. The other options do not specifically provide the capability to manage license assignments in the same way, which is why they are not applicable as the correct answer for this scenario.