Comprehensive and Detailed in-depth Step-by-Step Explanation:

TheNetwork Entity Title (NET)is a unique identifier assigned to an IS-IS router. It is derived from theNetwork Service Access Point (NSAP)address and consists of the following components:

Area Address:

Identifies the area in which the router resides.

Multiple routers in the same IS-IS area must have the same area address.

System ID:

Uniquely identifies the router within the IS-IS area.

The System ID is typically derived from the router's loopback IP address or another unique value.

SEL (Selector Field):

The SEL field is always set to00for IS-IS NETs.

The NET is used by IS-IS for route calculation and to identify the router within the IS-IS domain. Therefore, the statement isTRUE.