Explanation:

Let’s understand the scenario step by step:

❶ Flagship Bundle contains:

A product option: Premium Container
A nested bundle: Warranty
Within Warranty bundle:
Warranty Options: Gold, Platinum, Diamond
By default → none selected

❷ Business Requirement

If a user selects Premium Container (in flagship bundle)
And user has not already selected a warranty option
Then automatically select Diamond warranty in the Warranty nested bundle

This means:
Your rule’s condition lives in the parent bundle (flagship) → i.e. “Premium Container selected”
Your rule’s action needs to target a product option inside the nested bundle (Warranty) → i.e. check the box for Diamond warranty.

How Child Bundle Levels work

Child Bundle Condition Level

Controls whether your rule’s conditions look into nested bundles.
We want the condition to stay in the parent bundle.
So we set Child Bundle Condition Level = 1 so that the rule looks only one level down for conditions if needed—but in this case, it stays at the top level because the condition is on Premium Container.

Child Bundle Action Level

Controls whether your rule’s actions can reach into nested bundles.
We definitely need the action to select the Diamond warranty option inside the nested Warranty bundle.
So we must set Child Bundle Action Level = 1 to allow the rule to fire actions one level down into the nested bundle.

Hence:

✅ Child Bundle Condition Level = 1 → stay in flagship bundle (ok for this scenario)
✅ Child Bundle Action Level = 1 → reach into nested Warranty bundle

Thus, Option B is correct.

Why the other options are incorrect

A. Child Bundle Condition Level = 1; Action Level = None
Wrong → Action Level = None prevents actions in child bundles.

C. Condition Level = None; Action Level = 2
Action Level = 2 reaches two levels deep. Warranty is only one level deep. Not required.

D. Both = None
Won’t reach into nested bundles at all.