DRAG DROP
You have a server named Server2 that runs Windows Server 2012 R2. You have storage provisioned on
Server2 as shown in the exhibit. (Click the Exhibit button.)
You need to configure the storage so that it appears in Windows Explorer as a drive letter on Server1.
Which three actions should you perform in sequence? To answer, move the three appropriate actions from the
list of actions to the answer area and arrange them in the correct order.
Select and Place:
Answer: 
add ID on server1 not server2
Agree.
i was recheking this question, now i think provided answer is right:
1. Install iSCSI Target Server Role on Server 2
2. Create a VHD on Server 2 (New-IscsiVirtualDisk)
3. Create iSCSI Target on Server 2 (New-IscsiServerTarget)
4. Assign VHD to target (Add-IscsiVirtualDiskTargetMapping)
5. Specify iSCSI initiator ID on Server 2 <== step 1 for question
6. Start the iSCSI initiator service on Server
7. Specify the iSCSI target on Server 1 (Connect) <== step 2 for question
8. Create a volume and format it (on Server1) <== step 3 for question
Answer is correct.
Initiator IDs need to be added to the Target. So configuration change is on Server2
https://blogs.technet.microsoft.com/filecab/2012/05/21/introduction-of-iscsi-target-in-windows-server-2012/