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Correct Answer:
Box 1: 2
There are 10 update domains. The 14 VMs are shared across the 10 update domains, so 4 update domains will have 2 VMs and 6 update domains will have 1 VM. Only one update domain is rebooted at a time.
D1 D2 D3 D4 D5 D6 D7 D8 D9 D10
vm1 vm2 vm3 vm4 vm5 vm6 vm7 vm8 vm9 vm10
vm11 vm12 vm13 vm14
Maximum Down = 2
Minimum Down = 1
Box 2: 7
There are 2 fault domains. The 14 VMs are shared across the 2 fault domains, so 7 VMs in each fault domain. A rack failure will affect one fault domain so 7 VMs will be offline.
14 VM in 2 Fault Domain