https://tools.ietf.org/html/rfc7348
Due to this encapsulation, VXLAN could also be called a tunneling scheme to overlay Layer 2 networks on top of Layer 3 networks
A is correct
VXLAN encapsulates Layer 2 Ethernet frames within UDP packets, allowing Layer 2 adjacency across Layer 3 boundaries such as routers.
This encapsulation enables the creation of virtual Layer 2 networks over Layer 3 infrastructure.
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