VXLAN is a feature of ArubaOS-CX that provides layer 2 connectivity between networks across an IP network. VXLAN uses a 24-bit identifier called VXLAN Network Identifier (VNI) to segment the layer 2 domain. VXLAN also uses a tunnel endpoint (VTEP) to encapsulate and decapsulate VXLAN packets. A VXLAN interface is a logical interface that represents a VNI and is associated with a source IP address and a VRF. To set up VXLAN without EVPN, you need to create VXLAN interfaces on each switch and configure static VTEP peers. Based on the exhibit, Switch-1 needs to create two VXLAN interfaces, one with ID 5010 and one with ID 5020, to match the VNIs of the servers connected to it. Both VXLAN interfaces should use 192.168.1.1 as the source IP address, which is the loopback interface of Switch-1. Therefore, this is part of the process for setting up VXLAN to meet the requirements, and the correct answer is yes. For more information on VXLAN and EVPN, refer to the Aruba Data Center Network Specialist (ADCNS) certification datasheet and the EVPN VXLAN Guide for your switch model.