RHEL installs software as RPM packages (RPM originally stood for Red Hat Package Manager). The dnf tool downloads packages from repositories: directories of RPM files plus metadata describing them. On the exam the systems are often not registered to Red Hat, so a task will give you the location of the BaseOS and AppStream repositories and ask you to configure the machine to use them. If this step is wrong, every later install task fails, so it is worth getting perfect.
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