When an end station receives a frame, it is processed up the OSI stack. At Layer 2, the station checks the destination MAC address. For a broadcast, this is typically FF:FF:FF:FF:FF:FF, so the frame is accepted and its payload (an IP packet) is passed to Layer 3. At Layer 3 (the Network layer), the IP stack must inspect the destination IP address. If the address is a recognized broadcast address for the network (e.g., 255.255.255.255 or a subnet-directed broadcast), the host processes the packet. This Layer 3 inspection is the minimum step required to determine that the packet is a broadcast intended for the host's IP stack.

A. Layer 1: This layer only handles the physical transmission of bits; it does not process addresses or identify packet types.

B. Layer 2: While Layer 2 identifies the broadcast MAC address, it cannot interpret the IP packet within. It must pass the payload to Layer 3 for IP-level processing.

D. Layer 4: Processing may proceed to Layer 4 (e.g., for a DHCP Discover message using UDP), but the fundamental identification as an IP broadcast occurs at Layer 3.

E. Layer 7: The application layer is the ultimate consumer of the data, but the network-level processing to accept the broadcast packet happens at Layer 3.

1. Nokia 7750 SR OS Basic System Configuration Guide, Release 21.10.R1: In the "IP Addressing Overview" section, the guide discusses the assignment and function of IP addresses, including broadcast addresses, on router interfaces. This functionality inherently relies on Layer 3 processing to distinguish unicast, multicast, and broadcast traffic. The router's IP protocol stack must process the Layer 3 header to make these determinations. (Reference implies processing at the IP layer).

2. Kurose, J. F., & Ross, K. W. (2017). Computer Networking: A Top-Down Approach (7th ed.). Pearson. In Chapter 4, "The Network Layer: Data Plane," the text explains that the network layer in a destination host receives datagrams from the data link layer. Its primary role is to check the destination IP address to determine if the packet is for that host and then pass the payload up to the transport layer. This confirms Layer 3 is the processing point for IP addresses.

3. RFC 1122, Requirements for Internet Hosts -- Communication Layers, R. Braden (Ed.), October 1989. Section 3.2.1.3, "Addressing: Destination Address Validation," specifies that "The IP layer MUST verify that every incoming datagram is destined for the host." It explicitly lists limited and directed broadcast addresses as addresses that the IP layer must recognize as being for the local host. This standard mandates Layer 3 processing for broadcast packets. (DOI: https://doi.org/10.17487/RFC1122)