Refer to the exhibit. Company A migrated from Frame Relay WAN to Metro-Ethernet E-LAN service. Router B and C have only eBGP neighbor adjacency with router A using their Metro- Ethernet IP…

Standard eBGP behavior requires the advertising router to set itself as the BGP next-hop when re-advertising a route to an eBGP peer. Router A receives the prefix for Host F from Router C with next-hop equal to C, then re-advertises to Router B with next-hop equal to A's own Metro-Ethernet interface. Router B therefore forwards the packet to Router A, which in turn forwards it to Router C en route to Host F.

Router B has a valid BGP route to Host F's network learned from Router A via eBGP, so it has a reachable next-hop and will forward the packet rather than drop it.

Router B's BGP next-hop for Host F points to Router A, not Router C, because Router A replaced the next-hop with its own address during eBGP re-advertisement; direct B-to-C forwarding would only occur if next-hop-unchanged or next-hop-self pointing to C were explicitly configured.

BGP split-horizon is an iBGP restriction that prevents a route learned from one iBGP peer from being re-advertised to another iBGP peer; it does not apply to eBGP sessions, so Router A can freely re-advertise between Router B and Router C.