Click the exhibit.

In the context of BGP confederations, each sub-AS within the confederation behaves like a regular AS, but the entire confederation acts as a single AS when seen from the outside.

The given network diagram shows routers R1, R2, and R3 as part of the same confederation with different sub-AS numbers.

Router R2 is part of sub-AS 65101.

Confederation configuration for Router R2 must reflect its sub-AS membership and its relationships with its peers within the same confederation and external peers.

Option C shows Router R2 belonging to sub-AS 65101 and appropriately configuring its peers within the confederation.

References

Nokia Border Gateway Protocol Fundamentals documentation

Standard BGP configuration practices for confederations as per Nokia's guidelines