The answer is that the VRF RED is correctly configured for MPLS L3VPN, and the interface is placed in VRF RED. This is correct because the configuration defines a VRF named RED with a route distinguisher of 100:1 and matching route-target import and export values of 100:1, which is the standard requirement for a working MPLS Layer 3 VPN setup. The vrf forwarding RED command under the interface assigns that interface to the VRF, isolating its routing table from the global table and allowing the router to participate in the VPN by importing and exporting routes with the specified route-target. On the ENCOR 350-401 exam, this tests your understanding of VRF configuration fundamentals and how route-target matching enables proper route distribution between PE routers. A common trap is confusing the route distinguisher with the route-target—remember that the RD must be unique per VRF locally, but the RT must match across peers for route exchange. Memory tip: RD is local ID, RT is the VPN membership tag.
CCNP VRF and Path Isolation Practice Question
This 350-401 practice question tests your understanding of vrf and path isolation. This is a configuration task: choose the command set that satisfies every stated requirement. Small differences — like 'secret' vs 'password' or 'transport input ssh' vs 'all' — change whether the answer is correct. After answering, compare your reasoning against the explanation and wrong-answer breakdown below. Once you have made your selection, read the full explanation to reinforce the concept and understand why each distractor is designed to mislead on exam day.
Consider the following configuration on a Cisco IOS-XE router:
Answer the question above first, then reveal the full breakdown to understand why each option is right or wrong.
Correct answer & explanation
✓
The VRF RED is correctly configured for MPLS L3VPN, and the interface is placed in VRF RED.
Option A is correct because the configuration defines a VRF named RED with an RD of 100:1 and matching route-target import/export values, which is the standard setup for an MPLS L3VPN. The 'vrf forwarding RED' command under the interface assigns that interface to the VRF, isolating its routing table from the global table. This allows the router to participate in a Layer 3 VPN by importing and exporting routes with the specified route-target.
Key principle: Answer the scenario, not the keyword: identify the specific constraint before choosing the most familiar-sounding option.
Answer analysis
Option-by-option breakdown
For each option: why learners choose it and why it is or isn't the right answer here.
✓
The VRF RED is correctly configured for MPLS L3VPN, and the interface is placed in VRF RED.
Why this is correct
Correct. RD and RTs are set, and the interface uses VRF RED.
Related concept
Read the scenario before looking for a memorised answer.
✗
The 'rd' command is optional for VRF operation and can be omitted.
Why it's wrong here
Incorrect. RD is required for VRF to be used in MPLS VPNs.
✗
The 'route-target export' and 'route-target import' must match the RD value exactly.
Why it's wrong here
Incorrect. RTs can be different from RD; they control route distribution.
✗
This configuration will cause the interface to use the global routing table for forwarding.
Why it's wrong here
Incorrect. The interface uses VRF RED's routing table.
Common exam traps
Common exam trap: answer the scenario, not the keyword
Cisco often tests the misconception that the route-target must match the RD exactly, but in reality they serve different purposes and can be configured independently.
Detailed technical explanation
How to think about this question
In MPLS L3VPN, the RD (route distinguisher) creates unique VPNv4 prefixes by prepending an 8-byte value to the IPv4 prefix, while route-targets (RTs) control the import/export of routes between VRFs via BGP extended communities. A common real-world scenario is using a different RT for import and export to implement hub-and-spoke topologies, where the RD remains constant but RTs vary. The VRF forwarding command also enables CEF (Cisco Express Forwarding) per-VRF, ensuring that packets are forwarded using the correct VRF table.
KKey Concepts to Remember
Read the scenario before looking for a memorised answer.
Find the constraint that changes the correct option.
Eliminate answers that are true in general but not in this case.
TExam Day Tips
→Watch for words such as best, first, most likely and least administrative effort.
→Review why wrong options are wrong, not only why the correct option is correct.
Key takeaway
Answer the scenario, not the keyword: identify the specific constraint before choosing the most familiar-sounding option.
Real-world example
How this comes up in practice
A small business has 20 workstations on the 192.168.1.0/24 network and one public IP from its ISP. The router uses PAT (NAT overload) so all 20 devices share one public address using different source ports. NAT questions test whether you understand the four address terms and which direction each translation applies.
What to study next
Got this wrong? Here's your next step.
Identify which exam domain this question belongs to, review the core concept, then practise similar questions from the same domain.
VRF and Path Isolation — This question tests VRF and Path Isolation — Read the scenario before looking for a memorised answer..
What is the correct answer to this question?
The correct answer is: The VRF RED is correctly configured for MPLS L3VPN, and the interface is placed in VRF RED. — Option A is correct because the configuration defines a VRF named RED with an RD of 100:1 and matching route-target import/export values, which is the standard setup for an MPLS L3VPN. The 'vrf forwarding RED' command under the interface assigns that interface to the VRF, isolating its routing table from the global table. This allows the router to participate in a Layer 3 VPN by importing and exporting routes with the specified route-target.
What should I do if I get this 350-401 question wrong?
Identify which exam domain this question belongs to, review the core concept, then practise similar questions from the same domain.
What is the key concept behind this question?
Read the scenario before looking for a memorised answer.
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Question Discussion
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