Final answer:
To improve network performance for the WAN connection, the administrator should replace the interface with a 1000Base-T transceiver and configure the interface to use the desired speed of 250 Mbps.
Step-by-step explanation:
The poor performance of the WAN connection may be due to a mismatched duplex setting on the interface. The output of the show interface command indicates that the actual duplex setting is fdx, which means full-duplex is already configured. However, the configured speed is auto and the actual speed is 1Gbit. This suggests that the interface is operating at a higher speed than the WAN circuit can handle.
To resolve this issue, the administrator should configure the interface to use the same speed as the WAN circuit, which is 250 Mbps. This can be done by replacing the auto speed setting with the specific speed setting using the command speed 250.
Therefore, the correct action to improve the network performance for this WAN connection is to replace eth1/1 with a 1000Base-T transceiver and configure the interface to use the desired speed 250.