A DNS service runs on VM1. Each virtual network’s DNS settings are configured as shown. You want all VMs across the virtual networks to resolve names using the DNS server on VM1. What should you do?

Configuring peering between VNET1, VNET2, and VNET3 is the correct solution because it establishes network connectivity between all three virtual networks. This allows VMs in VNET2 and VNET3 to communicate directly with VM1 in VNET1, enabling them to use VM1 as their DNS server. Without peering, the virtual networks are isolated, preventing cross-network communication for DNS resolution. Conditional forwarders are used to forward DNS queries for specific domains to particular DNS servers, not to establish network connectivity between virtual networks. Service endpoints allow secure and direct connectivity to Azure services over the Azure backbone network, but they do not facilitate VM-to-VM communication across different virtual networks for DNS purposes.