Refer to the exhibit.

In the context of configuring L2VPN over MPLS, the xconnect statement is essential. It specifies the peer router and virtual circuit ID, creating the connection between two customer edge routers over the service provider’s MPLS network. Without the xconnect statement, there’s no association between the attachment circuits and pseudowire, leading to the failure of the L2VPN service.

References: Implementing and Operating Cisco Service Provider Network Core Technologies (SPCOR) - Cisco SPCOR Training & Certification