4.22.5 ‘Attempt keyboard-interactive authentication’
The SSH-2 equivalent of TIS authentication is called ‘keyboard-interactive’. It is a flexible authentication method using an arbitrary sequence of requests and responses; so it is not only useful for challenge/response mechanisms such as S/Key, but it can also be used for (for example) asking the user for a new password when the old one has expired.
PuTTY leaves this option enabled by default, but supplies a switch to turn it off in case you should have trouble with it.