Your network contains an Active Directory forest.

Microsoft Exchange Server 2010 is deployed in the forest.

You have a server named Server1 that has Microsoft SharePoint Foundation installed.

You need to ensure that users can receive email notifications when the SharePoint content is modified.

What should you do?

A.
Install the SMTP Server feature.

B.
Configure the Send To Connections.

C.
Configure the incoming email settings.

D.
Configure the outgoing email settings.

Explanation:
To configure outgoing e-mail for a farm by using Central Administration
1. Verify that you have the following administrative credentials: You must be a member of the Farm Administrators group on the computer that is running the SharePoint Central Administration Web site.
2. In Central Administration, click System Settings.
3. On the System Settings page, in the E-Mail and Text Messages (SMS) section, click Configure outgoing e-mail settings.
4. On the Outgoing E-Mail Settings page, in the Mail Settings section, type the SMTP server name for outgoing e-mail (for example, mail.example.com) in the Outbound SMTP server box.
5. In the From address box, type the e-mail address as you want it to be displayed to e-mail recipients.
6. In the Reply-to address box, type the e-mail address to which you want e-mail recipients to reply.
7. In the Character set list, select the character set that is appropriate for your language.
8. Click OK.

Source: http://technet.microsoft.com/en-us/library/cc288949.aspx