Which statement regarding classification by compilation is correct?

The assertion that classification by compilation applies when two pieces of information increase the classification level is important because it highlights the potential impact of combining separate pieces of data. When two pieces of previously unclassified information are compiled and their combination reveals a more sensitive insight, the overall classification level may indeed be raised. This concept is crucial in derivative classification practices, as it ensures that individuals recognize that the context or collective significance of multiple pieces of information may warrant heightened protection, regardless of the individual classification status of each piece.

The reasoning behind this makes it clear that merely compiling unrelated information or documents does not automatically elevate the classification (as would be suggested by other options). Instead, the principle at work involves understanding how the fusion of specific pieces of information might create a risk that is greater than the sum of its parts. The sensitivity of information can change based on the context in which it’s presented, hence underscoring why classification by compilation is a critical consideration in maintaining national security and sensitivity.