Explanation
the default behavior for iBGP is to propagate EBGP-learned prefixes without changing the next-hop. This can cause issues if the next-hop is not reachable via the IGP. One solution is to use the next-hop self command on R4, which will change the next-hop attribute to its own loopback address. This way, R5 can reach the next-hop via the IGP and install the route in its routing table.
Another solution is to add the external interface prefix (120.0.4.16/30) to the IGP routing tables of R4 and R5.
This will also make the next-hop reachable via the IGP and allow R5 to use the route. According to 2, this is a possible workaround for a pure IP network, but it may not work well for an MPLS network.

Explanation
OSPF uses different types of LSAs to describe different aspects of the network topology. Type 1 LSAs are also known as router LSAs, and they describe the links and interfaces of a router within an area. Type 3 LSAs are also known as summary LSAs, and they describe routes to networks outside an area but within the same autonomous system (AS). By default, OSPF will summarize routes from Type 1 LSAs into Type 3 LSAs when advertising them across area boundaries .

BGP uses several attributes to select the best path for a destination prefix. One of these attributes is origin, which indicates how BGP learned about a route. The origin attribute can have one of three values: IGP, EGP, or Incomplete. IGP means that the route was originated by a network or aggregate statement within BGP or by redistribution from an IGP into BGP. EGP means that the route was learned from an external BGP peer (this value is obsolete since BGP version 4). Incomplete means that the route was learned by some other means, such as redistribution from a static route into BGP. BGP prefers routes with lower origin values, so Incomplete is preferred over EGP, which is preferred over IGP.

Explanation
BGP route target filtering is a technique that reduces the number of routers that receive VPN routes and route updates, helping to limit the amount of overhead associated with running a VPN. BGP route target filtering is based on the exchange of the route-target address family, which contains information about the VPN membership of each PE device. Based on this information, a PE device can decide whether to accept or reject VPN routes from another PE device.
BGP route target filtering can be configured on PE devices or on route reflectors (RRs). Configuring BGP route target filtering on RRs is more efficient and scalable, as it reduces the number of BGP sessions and updates between PE devices. To configure BGP route target filtering on RRs, the following steps are required:
* Configure the family route-target statement under the BGP group or neighbor configuration on the RRs.
This enables the exchange of the route-target address family between the RRs and their clients (PE devices).
* Configure the resolution rib bgp.l3vpn.0 resolution-ribs inet.0 statement under the routing-options configuration on the RRs. This enables the RRs to resolve next hops for VPN routes using the inet.0 routing table.
* Configure an export policy for BGP route target filtering under the routing-options configuration on the RRs. This policy controls which route targets are advertised to each PE device based on their VPN membership.