According to me, as it is mentioned in PCF's 4 levels of High Availability, when an instance(process) fails, the Monit should recognize it and shourd restart it. And then it'll just send the report to BOSH. But if the whole VM goes down, it's BOSH's responsibility to recognize and restart it.
With this belief I answered one question in : https://djitz.com/guides/pivotal-cloud-foundry-pcf-certification-exam-review-questions-and-answers-set-4-logging-scaling-and-high-availability/
According to me, the answer for this question should be option 3, but it says I'm wrong and answer should be option 2. Now I'm confused. So please help me if my belief is wrong.