Correct - ACL as spesified in solutions will not block traffic as it is labeled.
(did a test, removed neighbour x.x.x.x send-label on R2 and R3 - this made the ACL denying specified sources)
R2:
interface Serial1/1:0
ip address 192.168.1.2 255.255.255.248
ip access-group BOGON in
Standard IP access list BOGON (Compiled)
20 deny 0.0.0.0 log
10 permit 192.168.1.0, wildcard bits 0.0.0.3 log (42 matches)
30 deny 10.0.0.0, wildcard bits 0.255.255.255 log
40 deny 127.0.0.0, wildcard bits 0.255.255.255 log
50 deny 169.254.0.0, wildcard bits 0.0.255.255 log
60 deny 172.16.0.0, wildcard bits 0.3.255.255 log
70 deny 192.168.0.0, wildcard bits 0.0.255.255 log
80 deny 224.0.0.0, wildcard bits 15.255.255.255 log
90 deny 240.0.0.0, wildcard bits 15.255.255.255 log
100 permit any (82 matches)
R1: test traffic from 192.168.40.40:
SPRack1R1#traceroute
Protocol
:
Target IP address: 34.1.4.4
Source address: 192.168.40.40
1 13.1.13.3 [MPLS: Label 26 Exp 0] 216 msec 60 msec 236 msec
2 192.168.1.2 [MPLS: Label 18 Exp 0] 92 msec 212 msec 212 msec
3 34.1.24.4 24 msec * 248 msec