Explanation

Box 1: Yes
131.107.50.10 is in a Trusted Location so the conditional access policy applies. The policy requires MFA.
However, User1's MFA status is disabled. The MFA requirement in the conditional access policy will override the user's MFA status of disabled. Therefore, User1 must use MFA.
Box 2: Yes.
131.107.20.15 is in a Trusted Location so the conditional access policy applies. The policy requires MFA so User2 must use MFA.
Box 3: No.
IP not from Trusted Location so Policy does not apply, Subnet 131.107.5.5 is not in the range of
131.107.50.0/24
Reference:
https://docs.microsoft.com/en-us/azure/active-directory/conditional-access/location-condition