What should you do?

Note: This question-is part of a series of questions that use the same scenario. For your convenience, the scenario is repeated in each question. Each questionpresents a different goal and answer choices, but the text of the scenario is exactly the same in each question-in this series.
Start of repeated scenario.
Your company has a main office in New York and a branch office in Toronto. Each office has a dedicated connection to the Internet. Each office has a firewall that uses inbound and outbound rules.
The company has an on-premises network that contains several datacenters. The datacenters contain multiple hypervisor deployments, including Window Server 2016 Hyper-V. The network uses Microsoft System Center for monitoring and Windows Azure Pack for self-service.
The company has a Microsoft Azure subscription that contains several workloads. You use Azure Resource Manager templates and other automated processes to create and manage the resources in Azure.
You have an Azure Stack integrated system in the New York office. The company has a deployment team in the Toronto office and a development team in the New York office. The system has an offer named Offer1. Several tenants have subscriptions based on Offer1.
You have a Hyper-V host named Server1 that runs Windows Server 2012 R2. Server1 is used for testing. The hardware on Server1 can support the deployment of the Azure Stack Development Kit.
You have a Generation 1 virtual machine named VM1 that runs Windows Server 2012 R2. VM1 is deployed to a Hyper-V host that runs Windows Server 2016. VM1 has a fixed size disk named VM1.vhdx that is 200 GB.
End of repeated scenario.
You need to ensure that you can import VM1 to Azure Stack.
What should you do?
A. Recreate VM1 as a Generation 2 virtual machine.
B. Convert the disk to a VHD.
C. Convert the disk to a dynamically expanding disk.
D. Upgrade VM1 to Windows Server 2016.

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