300-410 Layer 3 Technologies Practice Question
A network engineer is configuring MPLS Layer 3 VPN on a Cisco router. The engineer wants to ensure that the PE router can forward VPN traffic to the correct CE router based on the route target. Which of the following is required on the PE router?
⚠ Common exam trap
The trap here is focusing on BGP or IGP configurations while overlooking the fundamental VRF configuration with RD and RT.
Answer choices
Why each option matters
Answer the question above first, then reveal the full breakdown to understand why each option is right or wrong.
Correct answer & explanation
✓
A VRF instance with a route distinguisher and route target configured.
MPLS L3VPN relies on VRFs to separate customer routing tables. Each VRF must have a route distinguisher to make prefixes unique and route targets to control import/export of routes. The PE router uses these to forward traffic to the correct CE. Without a VRF with RD and RT, the PE cannot maintain separate VPN routing or forward based on VPN membership.
Answer analysis
Option-by-option breakdown
For each option: why learners choose it and why it is or isn't the right answer here.
- ✗
A static route to the CE router with a next-hop of the CE interface.
Why it's wrong here
Static routes can be used within a VRF to reach CE routers, but they are not mandatory. The PE can learn routes from the CE via a routing protocol like BGP or OSPF. The key requirement is the VRF with RD and RT. A static route alone does not enable VPN forwarding based on route targets.
- ✗
A route reflector client configured for the VPNv4 address family.
Why it's wrong here
Route reflectors are used to reduce the number of IBGP sessions in a network. While a PE router may be a route reflector client, it is not a requirement for MPLS L3VPN forwarding. The route target and VRF are the key components. A route reflector is an optional scalability mechanism, not a mandatory configuration for basic VPN forwarding.
- ✗
An IGP configured with multiprotocol BGP extensions.
Why it's wrong here
The IGP (like OSPF or IS-IS) is used for internal routing and to advertise MPLS labels for the core. It does not need multiprotocol BGP extensions. MP-BGP is used separately to advertise VPNv4 routes. The IGP and MP-BGP are distinct; combining them is not required for VPN forwarding.
- ✓
A VRF instance with a route distinguisher and route target configured.
Why this is correct
On a PE router, an MPLS L3VPN requires a VRF instance per VPN. The VRF must have a route distinguisher (RD) to make the VPN routes unique, and one or more route targets (RT) to control import and export of routes into and out of the VRF. This allows the PE to forward traffic to the correct CE based on the RT. Without these, VPN routing and forwarding would not work.
Go deeper
Related to this question
Learn chapter
Control Plane Policing and Protection
Key term
MP-BGP for VPN
MP-BGP for VPN is an extension of the Border Gateway Protocol that carries multiple types of network layer information to enable scalable, isolated virtual private networks over a shared provider infrastructure.
Key term
MPLS Layer 3 VPN
A technology that uses Multiprotocol Label Switching to create secure, scalable virtual private networks that connect multiple sites at the network layer, where the service provider manages routing between customer sites.
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JA
Written and reviewed by Johnson Ajibi, MSc IT Security
Senior Network & Security Engineer · founder of Courseiva
Last reviewed September 2026 · checked against the official Cisco exam blueprint
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