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Correct answers are

PE1 will reject the route due to automatic route filtering.
After you configure route-target import 999:999 for a VRF on PE1, the route will be accepted.


The below option is incorrect.
After you configure route-target import 999:999 for a VRF on PE3, the route will be accepted

You would not import the VRF router target on R3,  The VRF was created on R3.
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