A Tier-3 Service Provider is evolving into a Tier-2 Service Provider due to the amount...

Route Distinguishers (RDs) are fundamental to MPLS Layer 3 VPN architecture (RFC 4364). They allow the service provider to distinguish identical IP prefixes from different VPN customers by adding a unique identifier to each VPN route, preventing conflicts from overlapping IP spaces.

Unique RDs ensure that the VPNv4 address family maintains separation of identical customer prefixes.

Why other options are incorrect:

B: Route Targets control route import/export policy but do not differentiate overlapping prefixes.

C: NAT is not required inside MPLS VPN for overlapping IPs.

D: VRF IDs are local identifiers on routers; not relevant for prefix uniqueness in control plane.

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