When you come across unencrypted sensitive data such as personal government-issued information, the priority is to ensure its protection according to legal and company data handling policies. The correct course of action is to inform your supervisor or the appropriate management personnel immediately so that the incident can be managed correctly, steps can be taken to secure the data, and necessary compliance procedures are followed. It is important not to ignore the discovery, as this could lead to potential data breaches. Encrypting the files without authorization may go beyond the scope of your responsibilities and could potentially alter or damage the files, so it is not advisable. Moving the documents without reporting it does not address the potential breach protocol and underlying security issue, making this option incorrect as well.