Select two functions of MPLS Layer 3 VPNs.

MPLS Layer 3 VPNs utilize a two-label stack for forwarding customer traffic. The inner label, known as the VPN label (or VC label), identifies the specific VPN and the egress PE router for the customer's traffic. This encapsulation ensures customer traffic isolation and proper routing within the MPLS network, making "Customer traffic is encapsulated in a VPN label when it is forwarded in MPLS network" correct. BGP, specifically Multi-Protocol BGP (MP-BGP), is essential for distributing customer VPNv4 routes (IPv4 prefixes with a Route Distinguisher) between Provider Edge (PE) routers. This allows PE routers to learn routes for all VPNs they participate in, making "BGP is used for signaling customer VPNv4 routes between PE nodes" correct. "It is used for transparent point-to-multipoint connectivity between Ethernet links/sites" describes MPLS Layer 2 VPNs (e.g., VPLS), not Layer 3 VPNs. "A packet with node segment ID is forwarded along with shortest path to destination" refers to Segment Routing, a different forwarding paradigm. "LDP and BGP can be used for Pseudowire signaling" is true for MPLS Layer 2 VPNs, but not a primary function of Layer 3 VPNs.