Refer to the exhibit.

In service provider Ethernet transport environments such as VPLS, Ethernet OAM (Operations, Administration, and Maintenance) is used to provide fault detection, monitoring, and troubleshooting capabilities. The two relevant components here are:

A (Unicast heartbeat messages between MEPs): Maintenance End Points (MEPs) are configured at the edges of the OAM domain (SP-SW1 and SP-SW2). Heartbeat messages can be used to proactively monitor and detect loss of continuity between the endpoints.

B (Enable Connectivity Fault Management): CFM (IEEE 802.1ag) provides end-to-end fault detection, continuity check messages (CCMs), loopback, and link trace mechanisms that operate between MEPs at Layer 2. CFM enables proactive detection of failures and service-level assurance across the provider’s Ethernet segment.

Other options explained:

C: Upward MEPs are not applicable here since these are typically used for customer-facing or hierarchical maintenance domains.

D: E-LMI (Ethernet Local Management Interface) operates between CE and PE for service activation—not applicable for SP-SW to SP-SW fault detection across VPLS.

E: LLDP (Link Layer Discovery Protocol) is for neighbor discovery on directly connected interfaces—not suitable for end-to-end fault detection across a VPLS domain.

This design solution aligns fully with CCDE v3.1 principles for service provider Layer 2 VPN design and Ethernet OAM integration.