Refer to the exhibit.

In the provided network topology, Device E is positioned between Server 1 and Server 2. Device E, being a Layer 2 switch, will limit traffic between these servers by making forwarding decisions based on MAC addresses. If there are VLANs configured, Device E will ensure that traffic is segregated accordingly, allowing only specific traffic to pass between the servers as defined by the network policies.

References:

Cisco DevNet Associate Study Guide: Network Components (Chapter 2, Section: Switches and Their Role in Network Traffic Management).