
Explanation:

Box 1: No
User1 is assigned the Password Administrator for AU1 and AU2.
User3 is in AU2. User3 is User Adminstrator.
Password administrators cannot reset User Administrators passwords.
Note: Password Administrator
Users with this role have limited ability to manage passwords. This role does not grant the ability to manage service requests or monitor service health. Whether a Password Administrator can reset a user's password depends on the role the user is assigned.

Box 2: Yes
Box 3: No
User1 is assigned the Password Administrator for AU1 and AU2.
User2 is in AU1. User2 is User Adminstrator.
Password administrators cannot reset User Administrators passwords.
Note: User Administrator
Can manage all aspects of users and groups, including resetting passwords for limited admins.
Reference:
https://learn.microsoft.com/en-us/azure/active-directory/roles/permissions-reference#who-can-reset-passwords
https://learn.microsoft.com/en-us/azure/active-directory/roles/permissions-reference