Step 1 (E): Install the Azure File Sync agent on Server1
The Azure File Sync agent is a downloadable package that enables Windows Server to be synced with an Azure file share Step 2 (D): Register Server1.
Register Windows Server with Storage Sync Service
Registering your Windows Server with a Storage Sync Service establishes a trust relationship between your server (or cluster) and the Storage Sync Service.
Step 3 (C): Create a sync group and a cloud endpoint.
A sync group defines the sync topology for a set of files. Endpoints within a sync group are kept in sync with each other. A sync group must contain one cloud endpoint, which represents an Azure file share and one or more server endpoints. A server endpoint represents a path on registered server.

Virtual Machine Scale Sets can be used with the Azure Desired State Configuration (DSC) extension handler. Virtual machine scale sets provide a way to deploy and manage large numbers of virtual machines, and can elastically scale in and out in response to load. DSC is used to configure the VMs as they come online so they are running the production software.
Reference:
https://docs.microsoft.com/en-us/azure/virtual-machine-scale-sets/virtual-machine-scale-sets-dsc

Scale up ASP1 : Correct
Basic App service plan does not support backup/restore.

The Backup and Restore feature requires the App Service plan to be in the Standard, Premium or Isolated tier. Since in question it is mentioned as a Basic service plan app so at first you need to do it to Scale up the service plan so that backup can be enabled on App1.
Scale up: Get more CPU, memory, disk space, and extra features like dedicated virtual machines (VMs), custom domains and certificates, staging slots, autoscaling, and more. You scale up by changing the pricing tier of the App Service plan that your app belongs to.
Configure a WebJob for App1 : Incorrect
WebJobs is a feature of Azure App Service that enables you to run a program or script in the same instance as a web app, API app, or mobile app. There is no additional cost to use WebJobs

Scale out ASP1 : Incorrect
Scale out: Increase the number of VM instances that run your app. You can scale out to as many as 30 instances, depending on your pricing tier.
Configure the application settings for App1 : Incorrect
This is the 2nd step you need to perform once azure service plan upgraded to standard.
Most folks don't realize how easy it is to configure a backup copy of your Azure App Service to ensure you have restorable archive copies of your app and database. In order to take advantage of this, you'll need to log into your Azure account and go to your App Service that you created and look under Settings then you will see Backup

Reference:
https://azure.microsoft.com/en-in/pricing/details/app-service/windows/
https://docs.microsoft.com/en-us/azure/app-service/manage-scale-up
https://docs.microsoft.com/en-us/azure/app-service/webjobs-create
https://microsoft.github.io/AzureTipsAndTricks/blog/tip28.html

You create Azure web apps in an App Service plan.
Reference:
https://docs.microsoft.com/en-us/azure/app-service/overview-hosting-plans