How many Office 365 E3 licenses are assigned?

Your company has a Microsoft Azure Active Directory (Azure AD) tenant named contoso.com that includes the users shown in the following table.

Group2 is a member of Group1.
You assign a Microsoft Office 365 Enterprise E3 license to Group1.
How many Office 365 E3 licenses are assigned?
A. 1
B. 2
C. 3
D. 4

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