If you don't have access to the password, you can click on the "Preview" option to open the password-protected MS Office file ...
Google has announced a new feature allowing editing of password protected Microsoft Office files in Google Drive.
Google Workspace makes it even easier to view and edit password-protected Office files on the web.
As per an official blog, Google has announced that it is rolling out a new update for Google Drive. After this update, Google Drive will open Microsoft Office files directly in the editing mode.