HOTSPOT
An organization prepares to migrate to Office 365. The organization has one domain controller
named NYC-DC1 and one server named NYC-DS that is designated as the directory synchronization computer.
The organization has the following servers:
You plan to upgrade the servers to support directory synchronization.
You must upgrade each server to meet only the minimum requirements by using the least amount of
administrative effort.
You need to ensure that you can use the Windows Azure Active Directory Sync tool to synchronize
the local Active Directory with Office 365.
What should you do? Select the correct action from each list in the answer area.
Answer: 
Explanation:
NYC-DS
SP1 is not mentioned for any OS.
Hence the answer for this question should be Install Windows Server 2012(according to me)
Tricky Question
Windows Server 2008 INCLUDED SP1 in the RTM
So by default 2008 includes SP1
2008 R2 still requires SP1 added in for Dirsync, so correct answer is raise Domain Functional level and Install 2008 64bit(The 64 doesn’t matter).
http://www.zdnet.com/article/theres-no-windows-server-2008-sp1-in-the-works-heres-why/
That being said it’s tricky because we don’t know the SP level of the first server, but the domain functional level matters more right now.
That’s a good point.
http://msdn.microsoft.com/en-us/library/azure/jj151831.aspx
Fernandez,
If you reread the question and the diagram they haven’t mention anything about what is the forest functional level for NYC-DS, but as you may already know the minimum is 2003, if we look at the selection we have all first 3 selection are correct.
Answer is correct. Func. level of 2003 is minimum, as the OS for dirsync must be minimum 2008 (no r2).
See http://msdn.microsoft.com/en-us/library/azure/jj151831.aspx
I agree with Geilemaria, following minimum requirements she is right
However, there is no direct upgrade path from 2003 to 64bit 2008. So whilst 64bit 2008 is the minimum requirement, it would involve a lot more administrative effort than to install 2008 R2.
My beef with that it didn’t say anything about an upgrade so it would lead me to believe it’s a clean install. If that is the case 2008/2008r2 would involve the same amount of effort. The questions clearly states “You must upgrade each server to meet only the minimum requirements…”
So clearly it’s 2008.
If you are planning to install the Dir Sync tool on a member server rather on DC, minimum OS requirement is Server 2008 R2
True but when this question was written I don’t think you could install on a DC which is why they are putting the other machine in the mix.
It’s called Azure AD connect now
https://www.microsoft.com/en-us/download/details.aspx?id=47594
The minimum forest functional level requirement for Office365 is Windows Server 2003.
The minimum domain controller requirement for office 365 is 32-bit Windows Server 2003 Standard Edition with Service Pack 1 (SP1). From the available options, the minimum requirement is met by Windows Server 2008 R2 Standard Edition.
So,
1. raise the forest function level to 2003
and
2. DS to Win2008R2-Standard Edition