OSPF is implemented over a pseudowire Layer 2 VPN. Which statement about this design implementation is true?

PE devices are transparent Layer 2 forwarders in a pseudowire design and do not participate in OSPF adjacency, so PE-to-PE IP MTU matching has no effect on OSPF neighbor formation.

Physical interface MTU between CE and PE is a Layer 2 pseudowire encapsulation concern, not an OSPF requirement - OSPF adjacency is governed by the IP MTU of the logical interface seen by the CE peers.

In a pseudowire L2 VPN, PE devices provide transparent Layer 2 transport, making the CE routers the actual OSPF peers. OSPF encodes the interface IP MTU in Database Description (DBD) packets during adjacency negotiation, and a mismatch between CE devices causes the adjacency to stall in the ExStart or Exchange state, preventing full convergence.

The CE-to-PE IP MTU is not the determining factor for OSPF adjacency; the OSPF session is end-to-end between the two CE devices, so only the CE-to-CE IP MTU must match.