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.
Point and Shoot:
Answer: 
Explanation:
As all clients are windows 8 you only need to set 2 options hereYou only need to set distributed cache mode if you are using windows 7 clients.
The answer is confusing, does anyone know the correct answer to this question?
as it is stated that only client computers are in the remote office, you will have to “Turn on Branchcache” and “Set BranchCache Distributed Cache mode”
I agree, distributed cache mode is used when there is only client computers in the remote site.
Yes, as Win8 defaults to Hosted Cache mode it needs to be changed:
“Hosted Cache mode and Distributed Cache mode are mutually exclusive. A client computer can be configured to use only a single caching mode at one time.”
turn on branchcache
set branchcache distributed cache mode
Answer is incomplete and Explanation is wrong.
Answer is:
Turn On BranchCache
Set BrancheCache Distributed Cache Mode
It might be “confusing” as it is said that all client computers run Windows 8
Enterprise. In this case it doesn’t matter if client computers are Win7 or Win8. The IMPORTANT part is that there are NO servers in the branch office. And without local server(s) we can’t use “Configure Hosted Cache Servers” as suggested in the explanation.
– Set BrancheCache Distributed Cache Mode
“This policy setting specifies whether BranchCache distributed cache mode is enabled on client computers to which this policy is applied. In addition to this policy, you must use the policy “Turn on BranchCache” to enable BranchCache on client computers.
In distributed cache mode, client computers download content from BranchCache-enabled main office content servers, cache the content locally, and serve the content to other BranchCache distributed cache mode clients in the branch office.”
https://technet.microsoft.com/en-us/library/dd637832(v=ws.10).aspx
It says “remote site that only contains client computers”. The answer – Set BrancheCache Distributed Cache Mode. Travis is right.