This item is best solved by thinking like an operator in Prism Central: first identify whether the problem is design, control-plane state, or policy logic, then pick the option tied to that layer. The correct response is C, meaning “Targeted VMs must have category assignments.”. The Network Controller supplies the control-plane services required for Flow Virtual Networking. Without it, Prism Central cannot build and manage overlays, gateways, and related virtual networking constructs consistently across the cluster. In lifecycle terms, Nutanix expects administrators to respect prerequisites, compatibility, and dependency order before enabling or upgrading Flow-related services. By contrast, A sounds plausible, but it does not align with the specific Flow policy object or precedence rule that controls this case. B does not fit because it targets a different layer of the Nutanix networking and security stack than the one causing the outcome here. The key takeaway is that Flow is intentionally modular. Networking objects determine reachability, security objects determine permission, and lifecycle steps determine supportability. Mixing those layers usually produces the distractor answers. A strong exam habit is to ask which Nutanix construct would have to change for the symptom or requirement to change. That mental.