Final answer:
To create a PAgP EtherChannel, switches must have matching port Speed and PAgP mode. The ports must both be configured for desirable or auto modes to allow proper negotiation. The correct answer is D) PAgP mode.
Step-by-step explanation:
To create a PAgP EtherChannel between two switches, two important parameters must match on their ports. Firstly, Speed must be the same on both ports to ensure they can operate together without any speed mismatches causing errors.
Secondly, PAgP mode must be compatible; one side should be configured to actively send PAgP packets (desirable), and the other either actively sends PAgP packets as well or passively waits to receive them (auto). This allows the switches to negotiate the formation of an EtherChannel.
Other parameters such as spanning tree settings, native VLAN, and VLAN membership must match as well, although they are not PAgP-specific settings.