Encapsulation is used for 2 main reasons:
1.) Data hiding & protecting (the user of your class can't modify the data except through your provided methods).
2.) Combining the data and methods used to manipulate the data together into one entity (capsule). I think that the second reason is the answer your interviewer wanted to hear.
On the other hand, abstraction is needed to expose only the needed information to the user, and hiding unneeded details (for example, hiding the implementation of methods, so that the user is not affected if the implementation is changed).