I'd say C as well....
Contoso.com - we all know this one is a no
Contoso1919.onmicrosoft.com - we all know this one is good
Sub2.Contoso1919.onmicrosoft.com - we all know this one is good
Sub1.Contoso1919.onmicrosoft.com - possible service issue, but it's the default so most likely it has been verified before.
I confirm all domains. When it says "Incomplete Setup", there must be some DNS entries not yet validated. This does not mean i cannot create users with the domain.
Another horrible trick question from MS here. I just tested this as well for a domain that was showing "Incomplete setup" and I was able to create an account using that domain.
if you add a custom domain the status is: "incomplete setup" whether the domain is verified or not; a new user can only use the domain if it has at least been verified. C is definitely the correct answer, because we don't know if contoso.com has been verified or not.
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