Comprehensive and Detailed Explanation From Exact Extract:
"A MAC-VRF network instance operates as a Layer 2 bridging domain."
— SR Linux Network Instance Guide, "MAC-VRF Overview"
"The bridge table associates destination MAC addresses with exit interfaces."
— SR Linux Forwarding Guide, "MAC-VRF Forwarding"
"In a MAC-VRF, traffic is switched based solely on destination MAC addresses, not IP."
— SR Linux Network Instance Guide, "Bridging vs Routing"
"A MAC-VRF instance enables Layer 2 connectivity for devices sharing the same IP subnet."
— SR Linux EVPN Guide, "L2 Network Design"
Conclusion: Option C is false as MAC-VRF is L2-only.
[References:, Nokia, SR Linux Network Instance Guide, "MAC-VRF Overview"., Nokia, SR Linux Forwarding Guide, "MAC-VRF Forwarding"., , , ]