Refer to the exhibit. A network operator is troubleshooting TE tunnels and discovers that the soft preemption is not working as desired. Where should the soft preemption be applied to solve the issue?

MPLS Traffic Engineering (TE) soft preemption is a feature configured on the head-end router of a TE tunnel. It allows a preempted lower-priority tunnel to be gracefully torn down only after the new path for the higher-priority tunnel is successfully established and carrying traffic. This minimizes packet loss during preemption events. The command tunnel mpls te soft-preemption is applied directly under the specific tunnel interface configuration mode on the head-end router, which in this case is PE1 for tunnel-te1.

A. Preemption decisions and configurations are managed at the head-end of the tunnel, not the tail-end device.
C. While a global command exists, the most direct way to fix a specific tunnel is tunnel-specific configuration. The command is not related to a timeout setting.
D. The Loopback0 interface is typically used as the source or destination address for the tunnel, not for configuring TE operational parameters like preemption.

1. Cisco IOS XE MPLS Configuration Guide, Release 17.x, "MPLS Traffic Engineering Fast Reroute Link and Node Protection," Section: "Soft Preemption." This section states, "To configure soft preemption on a tunnel interface, use the tunnel mpls te soft-preemption command in interface configuration mode."

2. Cisco IOS MPLS Command Reference, tunnel mpls te soft-preemption command page. This document confirms the command is used in interface configuration mode to enable soft preemption for the tunnel interface.