You create a new, empty virtual network named vnet1 as shown in the exhibit.
You have another virtual network named vnet2 in a different Azure subscription. vnet2 is provisioned in the Azure Central US region with the address space 10.2.0.0/16.
You need to create a virtual network peering between vnet1 and vnet2.
What should you do first?
You should modify the address space of vnet1. To create a virtual network peering, both networks must have non-overlapping IP address spaces. Since vnet1 and vnet2 use the same address space, you need to use a different address space for vnet1, like 10.1.0.0/16 for example, before you create the virtual network peering.
You should not move vnet2 to the same subscription. You can create a virtual network peering between virtual networks in different subscriptions. If the subscriptions belong to different Azure Active Directory (AD) tenants, you should use the Azure Command-line interface (CLI), or the PowerShell Az Module to create the virtual network peering instead of the Azure portal.
You should not move vnet1 to the Central US region. You can create a virtual network peering between virtual networks in different regions. This is also called global virtual network peering.
You should not create a gateway subnet in vnet2. You should create a gateway subnet if you plan to deploy a virtual network gateway in vnet2. You do not need this to create a virtual network peering.