Which of the following authentication methods involves something a user has, like a physical token or a smart card?

The correct choice focuses on two-factor authentication, which is a security process that requires two different forms of verification to gain access. This method commonly incorporates something a user has, such as a physical token or smart card, alongside something the user knows, like a password. By combining these two factors, it significantly enhances security since an unauthorized individual would need both the physical item and knowledge of the password to gain access.

In this context, a physical token or smart card is an example of a "something you have" element. This adds a layer of protection because even if a password is compromised, the physical token is still required for authentication, making it much harder for an attacker to gain access.

The other options do not adequately represent the combination of something you have with another factor required for authentication. For instance, passwords alone rely on something you know, while biometric verification uses unique physical traits like fingerprints or facial recognition, which is based on something you are. Knowledge-based authentication relies exclusively on user-provided information, such as security questions. Therefore, it is clear that two-factor authentication is the method that incorporates a physical token, ensuring a more secure authentication process.