After issuing a show run command, an analyst notices the following command crypto ipsec transform-set MYSET esp-aes 256 esp-md5-hmac What is the purpose of this command?

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After issuing a show run command, an analyst notices the following command:

crypto ipsec transform-set MYSET esp-aes 256 esp-md5-hmac

What is the purpose of this command?

It establishes the set of encryption and hashing algorithms used to secure the data sent through an IPsec tunnel.
It defines the default ISAKMP policy list used to establish the IKE Phase 1 tunnel.
It establishes the criteria to force the IKE Phase 1 negotiations to begin.
It indicates that IKE will be used to establish the IPsec tunnel for protecting the traffic.

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