How will this traffic be handled?

Refer to the exhibit.

Server 1 has a significant amount of East/West communication with server 2. How will this traffic be handled?
A. Layer 2 switched within N2K1
B. Layer 2 switched within N5K1
C. Layer 2 switched within N7K1
D. Layer 3 routed within N5K1
E. Layer 3 routed within N7K1
F. Layer 2 switched with the vSwitch

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