Explanation
In VRF-Lite, Route distinguisher (RD) identifies the customer routing table and allows customers to be assigned overlapping addresses. Therefore it can support multiple customers with overlapping addresses -> Answer 'It can support multiple customers on a single switch' is correct.
VRFs are commonly used for MPLS deployments, when we use VRFs without MPLS then we call it VRF lite
->Answer 'It supports MPLS-VRF label exchange and labeled packets' is not correct.
- VRF-lite does not support IGRP and ISIS. ( -> Answer 'It supports most routing protocols, including EIGRP,ISIS, and OSPF' is not correct) - The capability vrf-lite subcommand under router ospf should be used when configuring OSPF as the routing protocol between the PE and the CE. - VRF-lite does not affect the packet switching rate. (-> Answer 'It can increase the packet switching rate' is not correct) Reference:
https://www.cisco.com/c/en/us/td/docs/switches/lan/catalyst4500/12-2/25ew/configuration/guide/conf/vrf.html#w