Exam MS-100 topic 3 question 87 discussion

HOTSPOT -
Your network contains an on-premises Active Directory domain named contoso.com. The domain contains five domain controllers.
Your company purchases Microsoft 365 and creates a Microsoft Azure Directory (Azure AD) tenant named contoso.onmicrosoft,com.
You plan to establish federation authentication between on-premises Active Directory and the Azure AD tenant by using Active Directory Federation Services (AD
FS).
You need to establish the federation.
What should you do? To answer, select the appropriate options in the answer area.
NOTE: Each correct selection is worth one point.
Hot Area:

Suggested Answer:
The on-premises Active Directory domain is named contoso.com. Before you can configure federation authentication between on-premises Active Directory and the Azure AD tenant, you need to add the domain contoso.com to Microsoft 365. You do this by adding a custom domain name.
The next step is to establish the federation. You can configure AD FS by using Azure AD Connect.
Reference:
https://docs.microsoft.com/en-us/azure/active-directory/hybrid/how-to-connect-install-custom#configuring-federation-with-ad-fs