Understanding the 169.254.x.x Address: An IPv4 address in the range of 169.254.x.x is an Automatic Private IP Addressing (APIPA) address, assigned when a DHCP server is unavailable. DHCP Server Offline: APIPA Assignment: When a device cannot obtain an IP address from a DHCP server, it assigns itself an APIPA address to enable local network communication. This allows communication with other devices on the same local subnet but not with external networks. Resolution: Ensure the DHCP server is operational. Check for connectivity issues between the virtual machine and the DHCP server, and verify the DHCP server settings. Comparison with Other Options: The subnet mask is incorrect: The subnet mask 255.255.0.0 is appropriate for the 169.254.x.x range and does not prevent external access by itself. The IP address is an RFC1918 private address: RFC1918 addresses are private IP ranges (10.x.x.x, 172.16.x.x-172.31.x.x, 192.168.x.x) but 169.254.x.x is not one of them. The DNS server is unreachable: While this could affect name resolution, it would not prevent the assignment of a non-APIPA address or local network communication. Troubleshooting Steps: Verify the DHCP server's status and connectivity. Restart the DHCP service if necessary. Renew the IP lease on the virtual machine using commands such as ipconfig /renew (Windows) or dhclient (Linux). Reference: CompTIA Network+ study materials on IP addressing and DHCP troubleshooting.