Your network contains three servers named Server1, Server2, and Server3.
All servers run Windows Server 2012 R2.
You need to ensure that Server1 can provide iSCSI storage for Server2 and Server3.
What should you do on Server1?

A.
Start the Microsoft iSCSI Initiator Service and configure the iSCSI Initiator Properties.

B.
Install the iSNS Server service feature and create a Discovery Domain.

C.
Install the Multipath I/O (MPIO) feature and configure the MPIO Properties.

D.
Install the iSCSI Target Server role service and configure iSCSI targets.

Explanation:
iSCSI: it is an industry standard protocol allow sharing block storage over the Ethernet. The server
shares the storage is called iSCSI Target. The server (machine) consumes the storage is called
iSCSI initiator. Typically, the iSCSI initiator is an application server.
For example, iSCSI Target provides storage to a SQL server, the SQL server will be the iSCSI
initiator in this deployment.
Target: It is an object which allows the iSCSI initiator to make a connection.
The Target keeps track of the initiators which are allowed to be connected to it.
The Target also keeps track of the iSCSI virtual disks which are associated with it.
Once the initiator establishes the connection to the Target, all the iSCSI virtual disks associated
with the Target will be accessible by the initiator.
iSCSI Target Server:
The server runs the iSCSI Target. It is also the iSCSI Target role name in Windows Server 2012.

http://blogs.technet.com/b/filecab/archive/2012/05/21/introduction-of-iscsi-target-in-windowsserver-2012.aspx