Why would overlay networks be required for this design?

A cloud design contains multiple hosts that are running a hypervisor. Each host has only two physical 10 Gb network adapters that are aggregated for bandwidth and failover. The physical switch ports for each host are configured as access ports. Each host will support numerous virtual machines and network segments. These virtual machines will communicate with other virtual machines on the same network segments.
Why would overlay networks be required for this design?
A. Support for more than two virtual switches
B. Support for more than one virtual segment
C. Support for more than two virtual machines
D. Support for more than one distributed virtual switch

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