http://www.cisco.com/en/US/tech/tk365/technologies_tech_note09186a00800ef7b2.shtml

http://www.cisco.com/en/US/docs/routers/access/800/819/software/configuration/Guide/6ser_conf. html

IP split horizon checking is disabled by default for Frame Relay encapsulation to allow routing updates to go in and out of the same interface. An exception is the Enhanced Interior Gateway Routing Protocol (EIGRP) for which split horizon must be explicitly disabled. Certain protocols such as AppleTalk, transparent bridging, and Internetwork Packet Exchange (IPX) cannot be supported on partially meshed networks because they require split horizon to be enabled (a packet received on an interface cannot be transmitted over the same interface, even if the packet is received and transmitted on different virtual circuits).
Configuring Frame Relay subinterfaces ensures that a single physical interface is treated as multiple virtual interfaces. This capability allows you to overcome split horizon rules so packets received on one virtual interface can be forwarded to another virtual interface, even if they are configured on the same physical interface.

First, notice that the more-specific routes will always be favored over less-specific routes regardless of the administrative distance set for a protocol. In this case, because we use OSPF for three networks (172.16.100.0 0.0.0.3, 172.16.100.64 0.0.0.63, 172.16.100.128 0.0.0.31) so the packets destined for these networks will not be affected by the default route. The default route configured on R1 "ip route 0.0.0.0 0.0.0.0 serial0/0 will send any packet whose destination network is not referenced in the routing table of router R1 to R2, it doesn't drop anything so answers A, B and C are not correct. D is not correct too because these routes are declared in R1and the question says that "OSPF has been correctly configured on router R2, so network directly connected to router R2 can communicate with those three subnetworks. As said above, the default route configured on R1 will send any packet destined for a network that is not referenced in its routing table to R2; R2 in turn sends it to R1 because it is the only way and a routing loop will occur.