Technical explanation
B is the best answer, with two qualifications. First, “pop-to-pod” is evidently a source typo for “pod-to-pod.” Second, default WireGuard mode encrypts traffic between Cilium-managed pods on different nodes; node-to-node, pod-to-node, and node-to-pod coverage requires enabling the additional encryption.nodeEncryption=true mode.
Cilium creates WireGuard peers per node, not per pod. Each Cilium agent generates a node key pair, advertises the public key through its CiliumNode resource, and forms secure tunnels with other known nodes. This makes D incorrect. Same-node packets do not traverse a WireGuard tunnel because encryption cannot protect them from an observer already able to inspect raw traffic on that host, so A reverses the documented behavior.
C also reverses the encapsulation sequence. In tunnel-routing mode, pod traffic is first encapsulated for the VXLAN or Geneve overlay and is then encapsulated by WireGuard. The result is double encapsulation, with WireGuard protecting the overlay packet while it crosses the network between nodes.
Thus, B describes WireGuard’s supported traffic coverage most closely, but exam candidates should remember the separate node-encryption configuration requirement.
Official references
WireGuard Transparent Encryption
Study Guide topic: WireGuard peer architecture, encrypted traffic matrix, same-node behavior, and encapsulation order.