You created an Azure policy and assigned it to RG1. If you instead assign that policy directly to NSG1 and NSG2, what will occur?

Azure Policy assignments are inherited by all child resources. When a policy is assigned to a resource group (RG1), it applies to all resources within that resource group, including NSG1 and NSG2. If you then assign the same policy directly to NSG1 and NSG2, the direct assignment takes precedence for those specific resources. Assuming the policy's effect is to disable flow logs, then directly assigning it to NSG1 and NSG2 will ensure flow logs are disabled for both. The other options are incorrect because the policy would apply to both NSGs due to either inheritance or direct assignment, and the policy's effect is to disable, not enable, flow logs.