You can Create a Device Group Hierarchy to nest device groups in a tree hierarchy of up to four levels
https://docs.paloaltonetworks.com/panorama/11-0/panorama-admin/panorama-overview/centralized-firewall-configuration-and-update-management/device-groups/device-group-hierarchy
I picked the wrong answer (D), but the correct answer to this question is C. The question asks how many levels there are BELOW the "Shared" level, so 4 levels is correct. Technically there can be a total of 5 levels.
Answer : C
You can Create a Device Group Hierarchy to nest device groups in a tree hierarchy of up to four levels, with lower-level groups inheriting the settings (policy rules and objects) of higher-level groups.
https://docs.paloaltonetworks.com/panorama/9-1/panorama-admin/panorama-overview/centralized-firewall-configuration-and-update-management/device-groups/device-group-hierarchy
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