VXLAN (Virtual Extensible LAN) encapsulates Ethernet frames inside UDP packets, increasing packet size. This can lead to fragmentation and performance degradation unless Jumbo Frames are enabled.

Breakdown of Options:

A. 802.1Q tagging – VLAN tagging enables segmentation but does not address fragmentation issues.

B. Spanning tree – STP prevents loops but does not improve performance for VXLAN traffic.

C. Link aggregation – LACP combines links for higher bandwidth but does not prevent fragmentation.

D. Jumbo frames – Correct answer. Enabling Jumbo Frames allows larger packet sizes, reducing fragmentation and improving VXLAN performance.