1. Juniper Networks TechLibrary
Junos OS VPNs Library for Routing Devices
"Layer 2 VPNs Overview": This document states
"In a Layer 2 VPN
routing occurs on the customer's routers (called CE routers). ... The service provider's routers transparently pass the customer's traffic between the customer's sites." This supports the conclusion that CEs form a neighborship with each other (Option D) and not with the PEs (refuting Option A).
2. Juniper Networks TechLibrary
Junos OS VPNs Library for Routing Devices
"Layer 2 VPNs and VPLS Feature Guide
Layer 2 VPNs and VPLS Overview": This guide explains
"The service provider's edge routers (PEs) do not need to store or process the customer's routes. The PE routers only need to be configured to carry the traffic from the customer's site across the network." This confirms the separation between the provider's routing domain (where its OSPF area is defined) and the customer's
making their area configurations independent (supporting Option B and refuting Option C).