C is not correct while this only applicable when performed at the backup repository where the data is stored, not during the transfer process across the WAN.
I believe C is the correct answer because Proxies do provide deduplication whereas I am not sure about if Proxy provides what is mentioned in E option.
Having at least one backup proxy server in each site when defining a replica job is recommended
because the backup proxy servers are responsible for data processing and transfer. Having proxies in
both sites enables a stable connection for VM data transfer across sites, as they handle the data
compression, deduplication, and transfer processes. This setup ensures that data is efficiently moved
from one site to another, thereby making replication more resilient and reliable. Proxies do not
automatically restart replication after failure (A), remove the need for VM snapshots during transit (B
and F), or enable automatic WAN acceleration (D), although they can work in conjunction with WAN
accelerators if configured to do so. They also don't directly deduplicate data during transit across the
WAN (C), although they do compress and optimize it for transfer.
C I Think
The traffic from the source to the backup proxy is not optimized, for example, compressed or de-duped. Therefore, 100% of the backup data is transferred over this connection.
Between the backup proxy and backup repository, optimized data typically about 50% of the source data size is transferred over this connection.
https://helpcenter.veeam.com/docs/backup/vsphere/backup_proxy.html?ver=120
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