Tailwind Traders needs sub‑20 ms latency from their on‑premises routers to VMs in a connected VNet. They plan to use ExpressRoute FastPath to reduce datapath hops. Which statement correctly describes a prerequisite and how traffic flows when FastPath is enabled?

The correct answer accurately describes ExpressRoute FastPath's prerequisites and functionality. FastPath requires specific ExpressRoute gateway SKUs (ErGw1AZ, ErGw2AZ, ErGw3AZ, or other supported SKUs) to function. Its core benefit is bypassing the ExpressRoute gateway's packet-processing datapath, sending traffic directly from the ExpressRoute circuit to the VM host fabric and NIC. This direct path significantly reduces latency and improves network performance. The other options are incorrect: FastPath cannot be enabled on Basic or Classic gateways, and its purpose is to bypass the gateway VM for data traffic, not route all traffic through it. FastPath does not replace BGP; BGP is essential for route exchange over ExpressRoute. FastPath only optimizes the data plane. FastPath supports Private Peering for VNet connectivity and is primarily designed to accelerate traffic to Azure VMs and services within a VNet, not exclusively Microsoft peering or SaaS traffic.