IPod Touch email account password saved securely by iTunes on PC?

I have an old iPod Touch running the iPhone OS for iPod Touch version 3.1.3 (7E18).  I'm not sure what the 7E18 means.
When I use the builtin email app to access email over WiFi, my password is stored in the iPod Touch.  Is this piece of info squirrelled away on the PC by iTunes during synchronization?  If so, how securely is it kept?

Passwords are included in the backup of the iPod that iTunes makes as the first step in syncing your computer.
"Keychain (this includes email account passwords, Wi-Fi passwords, and passwords you enter into websites and some other applications. If you encrypt the backup with iOS 4 and later, the keychain information is transferred to the new device. With an unencrypted backup, the keychain can only be restored to the same iPhone or iPod touch. If you are restoring to a new device with an unencrypted backup, you will need to enter these passwords again.)"
There are backup extractors but the one I looked at did not mention to be able to extract the keychain.  I would expect the keychain items to be secure since mac use a keychain and it is secure.

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