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The Routers in the network diagram are configured with RIPv2. Static routing is also configured as shown in the graphic. How would HQ handle a packet it receives on interface S0 that is destined for a remote host 11.2.1.1?
forward it to 10.1.3.1
drop the packet
forward it to 10.1.2.1
forward it to 10.1.1.1
none of these
The destination address 11.2.1.1 is not on the routing table of HQ. Default routing is configured however, that means packets destined to unknown destination will be forwarded to 10.1.3.1 instead of dropping. IP address 11.2.1.1 is not part of the 11.1.0.0/16 network. (http://en.wikipedia.org/wiki/Static_routing)
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