HOTSPOT
Your network contains an Active Directory domain named contoso.com. All client computers
run Windows 8 Enterprise.
You have a remote site that only contains client computers. All of the client computer
accounts are located in an organizational unit (CU) named Remote1. A Group Policy object
(GPO) named GPO1 is linked to the Remote1 OU.
You need to configure BranchCache for the remote site.
Which two settings should you configure in GPO1?
To answer, select the two appropriate settings in the answer area.
Answer: 
Explanation:
http://technet.microsoft.com/en-us/library/dd637820(v=ws.10).aspx
some do mention windows 8, we not require to turn on distributed cache mode, only hosted cache server.
any more clarification?
It is correct. For hosted share you need a server in a branch. There are only client computers.
I see…
Just to clarify, the answer is correct.
You would use “Configure Hosted Cache Servers” if the Windows 8 machines were using a hosted cache server, not when you’re just using distributed cache mode.
@ Tyson I see you have commented on several. Do you have an email that I could respond back to. I had a question on a few others not on here or ones Im not sure on. Thanks
How do you hotspot (Point and Shoot) two options?
this answer is wrong because to use distributed cache mode the client computer need to run windows 7 too so the correct answer is Turn on branchcache and Configure hosted cache servers
https://technet.microsoft.com/en-us/library/dd637832%28v=ws.10%29.aspx
No, there are no servers, only PC clients (read the question!). Hosted Cache Servers simply aren’t there. Distributed Cache makes BranchCache turn into some sort of peer-to-peer mode without need for servers.
Downside is, that files in the cache may become unreachable if any of the PC’s are turned off. But well. It *is* cheaper.. 🙂
Distributed Cache mode: In Distributed Cache mode, no hosted cache server is present. Instead, all BranchCache enabled clients act as cache servers for other clients on their local subnet (Note that BranchCache clients must be running Windows 7 Enterprise or Ultimate edition, or Windows 8 Enterprise or Windows 8.1 Enterprise edition.)
This is taken from the Exam Ref 70-412 book. So it doesn’t need to run Windows 7 too, like someone mentioned above. The answer stated is correct.
Stu is right, its in the ref. – win 8 supports distributed
The important keyword in this case is NOT whether the clients PC’s are Win8 or 7, but the fact that there is NO local server in the branch. You CANNOT use hosted cache if there is no local server, so only the distributed option remains. Answer is correct.
Totally agree. Those are the reasons why this answer is correct.
That’s the explanation I was looking for, in order to understand the answer. Thank you. Agree with the main answer.
The answer is correct, the fact the question mentions that all client computers are windows 8 is just to try and confuse you and actually does not affect anything.
Joe is right , The answer is correct
The answer is correct.
Key things: “All client computers run Windows 8 Enterprise.” and “You have a remote site that only contains client computers.”
since it is a windows 8 it has to be Hosted Cache Servers.
You will need Distributed cache mode if you are using windows 7.
Dude… read the comments and avoid posting incorrect information please..