Discussion
Assertion (A): Overlay networks allow two tenants to use the same private address range without conflict.
Reason (R): Each tenant's traffic is encapsulated and carried over the shared physical fabric.
Answer: D
Correct answer: Both A and R are true, and R is the correct explanation of A
Both are true and the reason is the mechanism. Encapsulation wraps the tenant’s frame inside an outer header carrying a tenant identifier, and only the outer header is used for forwarding on the physical fabric. The inner addresses are therefore scoped to the tenant, so two tenants can both use 10.0.0.0/8 without the fabric ever having to tell them apart by address.
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