Which statement about VPN instances is false?

The statement that a PE (Provider Edge) maintains only one routing and forwarding table is false because, in reality, each VPN instance functions with its own distinct routing and forwarding table. This is a critical feature of VPN instances, allowing them to operate independently and serve different customer VPNs without interfering with one another.

Each VPN instance is designed to handle the routing information specific to the virtual network it represents. This means that, for multiple VPN instances on the same PE device, there will be multiple routing and forwarding tables, ensuring that traffic for different customers is separated and managed correctly. This independence is essential for providing dedicated services and maintaining the privacy and integrity of each customer's data.

The other statements are true: VPN instances on a PE are indeed independent, each acts like a separate virtual router, and a VPN instance can be bound to multiple sites, meaning that a single virtual network can span multiple locations for a given organization. These features underline the flexibility and capability of VPNs in providing tailored solutions within broader networking environments.