Option C functionality is associated with LISP, not VXLAN. In LISP, EID (Endpoint Identifier) to RLOC (Routing Locator) mapping is a key function. VXLAN does not use EID-to-RLOC mapping. Instead, it uses VTEPs to encapsulate and decapsulate VXLAN packets.
virtual tunnel endpoint (VTEP) An entity that originates or terminates a VXLAN tunnel. It
maps Layer 2 and Layer 3 packets to the VNI to be used in the overlay network.
VTEP = VXLAN Tunnel Endpoint = what switch to tunnel traffic to, for delivery to that IP / MAC (computer).
https://netcraftsmen.com/sd-access-flows-registration-and-same-fabric-forwarding/
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