An engineer must optimize ARP responses and reduce unnecessary ARP broadcasts over the VXLAN/EVPN fabric. Which action accomplishes these tasks?

Configuring `ip proxy-arp` within the VXLAN VNI is not the standard or effective method for optimizing ARP over VXLAN; proxy ARP typically serves a different purpose of answering ARPs on behalf of hosts on other subnets.

When `suppress-arp` is enabled on a VXLAN VNI, the VTEP caches IP-to-MAC address mappings. Upon receiving an ARP request for a known IP address, the VTEP directly responds from its cache, preventing the ARP request from being flooded across the VXLAN overlay and minimizing broadcast traffic.

Configuring `ip proxy-arp` under the VLAN SVI is generally for traditional IP routing scenarios and does not directly provide the ARP optimization benefits for VXLAN/EVPN fabrics that ARP suppression does.

Configuring `suppress-arp` under the VLAN SVI associated with the VXLAN VNI is an incorrect command placement; ARP suppression for VXLAN is specifically configured within the NVE interface under the VNI configuration.