I am using a Game Engine to create an iOS game app which allows me to drag-and-drop the generated files into Xcode to get the app binary. The said engine encrypts the files when exporting to an Xcode Project (to stop people reverse engineering their project files), then uploads the Xcode Project Build to the App Store using iTunes Connect.
How should I answer the following question during the submission process?:
Is your app designed to use cryptography or does it contain or incorporate cryptography? (Select Yes even if your app is only utilizing the encryption available in iOS or OS X.)
More info on the compliance can be found here.