The correct answer is B.
IEEE 802.1Q is a network standard for VLAN tagging. VLAN is layer II.
Layer III interfaces, or sub-interfaces are used for routing, and inter-vlan communication (if needed), but L3 interfaces work with L3 IP addressing, not with VLAN Tags.
C, For each Ethernet port configured as a physical Layer 3 interface, you can define additional logical Layer 3 interfaces (subinterfaces). You can create a Layer 3 subinterface for a PPPoE client for IEEE 802.1Q VLAN when your ISP uses an 802.1Q VLAN tag on a PPPoE subinterface.
According to
https://docs.paloaltonetworks.com/pan-os/9-1/pan-os-web-interface-help/network/network-interfaces
Both B and C are possibilities, but my CCNA kneejerk reaction would choose B.
However, since you can do it at layer 3 (for the same money, "everything" layer 3 was more expensive in the past) and layer 2 is more vulnerable... .
TBH this question should have a "choose two" option because neither can be excluded definetively.
I think it's B. Checked on the FW right now. The question says ASSIGNED so when you Add a Layer 2 Subinterface, there is an option at the bottom "Assign Interface to" and have a VLAN field. In a Layer 3 Subinterface doesn't.
Accordently "https://docs.paloaltonetworks.com/pan-os/11-0/pan-os-web-interface-help/network/network-interfaces/layer-3-subinterface#id5604fdd4-bce9-430d-a111-52372ecc194b"
Correct Answer is C.
You can create a Layer 3 subinterface for a PPPoE client for IEEE 802.1Q VLAN
B IEEE 802.1Q is a standard for VLAN tagging in Ethernet networks. In Cisco IOS, VLANs are typically assigned to Layer 2 subinterfaces, which are logical interfaces that allow a physical interface to be divided into multiple virtual interfaces. Each Layer 2 subinterface can be assigned a unique VLAN ID, allowing traffic to be separated and managed based on VLAN membership.
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