Azure Fundamentals AZ-900 Practice Test 6

Box 1: No
It is not true that you must deploy a federation solution or sync on-premises identities to the cloud. You can have a cloud-only environment and use MFA.
Box 2: No
Picture identification and passport numbers are not valid MFA authentication methods. Valid methods include: Password, Microsoft Authenticator App, SMS and Voice call.
Box 3:
You can configure MFA to be required for administrator accounts only or you can configure MFA for any user account.
References:
https://docs.microsoft.com/en-us/azure/active-directory/authentication/howto-mfa-getstarted
https://docs.microsoft.com/en-us/azure/active-directory/authentication/concept-authentication-methods