You need to ensure that all of the folders in Folder1 have a 100-MB quota limit

I think it should ‘A’

http://technet.microsoft.com/en-us/library/jj900616.aspx

Answer is C
Answer A and B are to correct an inconsistency in quota mgmt:
example
Microsoft does not calculate the sum of the sizes every time a new file is stored, deleted or changed. What they store is the amount that is available.
Folder A (quota 100MB, available amount 55MB) contains 2 files, A (40 MB) and B (5MB)
add a file C of 2 MB to this folder, then first check if 55>2,
if yes then store the file and store a value of 55-2=53 as “available amount”.
Suppose the following event: a simultaneous delete of file A of 40MB and an add of a file D of size 50 MB.
The “Delete” action, removes the file and wants to do a write action to make the “available amount” 53+40=93, but in the meanwhile the “Add” action starts, checks 53>50, which is true so the store is allowed, the “avalable amount” is written by the completing add action to hold the new value of 3. Then the delete action completes it’s write and stores 93 in the “avalable amount”.
The files in the folder are B (5MB), C (2MB) and D (50MB) and the “available amount” is 93!!!

To recalculate the correct “available amounts” we have a cmdlet Update-FsrmQuota
The same goes for the Update-FSRMAutoQuota cmdlet, that calculates the available amounts in the case that somebody changes the propagating size to subfolders as described in the explanation of this question.

This seems such an easy question, yet there are so many different answers!
First I would go with the Update-FsrmAutoQuota cmdlet. I’ve seen it in other places
as the right answer.
Then we have WIM that says he would apply a new quota,but does not explain why, only that
the two cmdlets are , what a new!, to correct something Microsoft has done wrong.
I’m going to duplicate this question on my lab, right away
Well, having applied the template 100Mb quota to Folder1, it stops accepting files when
arriving at almost 100% space occupied.
Delete some files, create a subfolder, copy some files to the subfolder, and it stops accepting files when folder1 reaches 100Mb, meaning Folder1 occupied space being the space directly underneath itself and the sum of its subfolders, what I find logic.
So, it works without further intervention, as supposed.

This simple questions:
A- Wrong – why?: This only Starts a quota scan on a path; this command does not create any new quotas to subfolders
https://technet.microsoft.com/en-us/library/jj900616.aspx
B- Wrong – why?: This only Updates the properties of an auto apply quota; it does not create any quotas to subfolders
https://technet.microsoft.com/en-us/library/jj900582.aspx
C- Correct – why?: Refer to explanation of this question
D- Wrong – why?: https://technet.microsoft.com/en-us/library/cc875776(v=ws.10).aspx

“ALL of the folders in Folder1 have a 100-MB quota limit.” That means each folder in folder1 having it’s own 100mb limit. It has to be an auto apply quota and you can’t switch between the two so you have to make a new one.

Look at the icons, the commands Update-FsrmAutoQuota is used for Auto-Apply quotas the icons in the exhibit are showing path quotas…

Try this in your vm, create a path quota then create an auto apply quota using the same share you will see that the path icon is the same as the exhibit above and applys to only the sahre, no subfolders.

where as the auto apply quota applys to the share but not subfolders, there is another question in this exam that is similar and opposite to this which also makes use of the icon as a means to trick you, just for auto-apply quotas instead of path quotas.

in that question the answer is also to re-create the quota