The statement is false because the responsibility for adding the Ethernet Segment Identifier (ESI) label lies with the ingress Provider Edge (PE) router that receives the traffic from the multi-homed Ethernet Segment (ES). In the traffic flow depicted, CE1 sends Broadcast, Unknown Unicast, or Multicast (BUM) traffic to PE1. PE1, as the ingress PE for ES-1, adds the ESI label for ES-1 before performing ingress replication to remote PEs (PE2 and PE3). PE3, being a peer PE on the same ES-1, receives this packet, inspects the ESI label, and performs split-horizon filtering by not forwarding the traffic back to CE1. PE3 does not add an ESI label itself in this process.

A. This statement is also false. In an EVPN with ingress replication, the source PE (PE1) replicates BUM traffic to all other PEs. Egress PEs (PE3) do not re-replicate this traffic to other PEs.

C. This statement is also false. The split-horizon filtering based on the ESI label is performed by the PE (PE1 in the hypothetical reverse flow). The PE would discard the frame, not forward it to the CE.

D. This statement is also false as written. According to the ingress replication model shown, PE1 forwards the traffic to PE2. PE3 does not forward BUM traffic to other PEs.

(Examiner's Note: This question is flawed as options A, B, C, and D are all factually incorrect statements based on standard EVPN operation. However, option B describes a fundamental misunderstanding of the ESI label imposition rule, which is central to the EVPN multi-homing mechanism being tested.)

1. Nokia 7750 SR OS, 7450 ESS, and 7950 XRS EVPN Services Guide, Release 22.10.R1, Section: EVPN for MPLS Tunnels.

Page 103, "Split horizon" section: "The PE at the ingress of the network (that is, the PE that receives the traffic from the CE) encapsulates the packet with the ESI label and the VPLS label, and sends it to the remote P