
Explanation:
Box 1: An Azure Log Analytics workspace
In the Azure portal you can set up a Log Analytics workspace, which is a unique Log Analytics environment with its own data repository, data sources, and solutions.
Box 2: NSG1
NSG flow logs allow viewing information about ingress and egress IP traffic through a Network security group. Through this, the IP addresses that connect to the ILB can be monitored when the diagnostics are enabled on a Network Security Group.
We cannot enable diagnostics on an internal load balancer to check for the IP addresses.
As for Internal LB, it is basic one. Basic can only connect to storage account. Also, Basic LB has only activity logs, which doesn't include the connectivity workflow. So, we need to use NSG to meet the mentioned requirements.