The firewall filter configuration in the exhibit specifies a filter with two terms. Term 1 matches traffic from the source address 10.0.0.0/8 and has two actions: 'log' and 'next term'. The 'log' action will record the match to a log file, and 'next term' indicates that the firewall should evaluate the next term after logging. There is no explicit action such as 'accept' or 'reject' in term 1, so by default, the traffic will be accepted unless subsequently rejected by another term.
Term 2 has the action 'reject', which discards packets that reach this term. Since there is no 'from' condition in term 2, it acts as a default rule for all traffic not matched by term 1.
Because the traffic sourced from 10.0.0.0/8 matches term 1 and there is no reject action in that term, it will be logged and then accepted by the firewall filter. There is no subsequent term that rejects this specific traffic, so the action from term 2 does not apply to it.