Exhibit.

In this scenario, router1 (AS 65001) is attempting to establish an External BGP (EBGP) peering with router2 (AS 65002) using their loopback (lo0) interface addresses (192.168.1.1 and 172.16.1.1).

According to the Junos OS 24.4 documentation on BGP peering sessions:

EBGP TTL Default: By default, EBGP packets are sent with a Time-to-Live (TTL) value of 1. This assumes the peer is directly connected on a shared physical subnet.

Loopback Peering Challenge: When peering between loopback addresses, the destination IP is not on the same subnet as the physical ingress interface. Even if the routers are directly connected physically, the router treats the loopback interface as an additional "hop". With a TTL of 1, the BGP packet expires before it can be processed by the peer's routing engine.

The Multihop Solution (Option D): To allow this session to form, you must configure the multihop statement under the BGP neighbor hierarchy. This tells Junos to increase the TTL (the default becomes 64 when multihop is enabled) and allows the session to establish even though the peer's address is not directly connected.

Target Neighbor: The neighbor address specified in the configuration on router1 must be the remote loopback address of router2 (172.16.1.1).

Option A (Multipath) is incorrect because it is used for load balancing across multiple active BGP paths, not for initial session establishment.

Options B and C are incorrect because they reference physical interface addresses (10.10.20.1 or 10.10.10.1) which are not the addresses being used for the loopback-based BGP session.