TRUE or FALSE: When traffic passes through a router, endpoints can drop traffic from devices with a RED health status based on their MAC address.

The assertion that endpoints can drop traffic from devices with a RED health status based on their MAC address is false. In the context of a Sophos XG Firewall, a device's health status, such as RED, indicates that it is unable to communicate properly with the network or the Sophos XG itself. This status does not inherently allow endpoints to manage traffic based on MAC addresses. MAC address filtering typically requires a different setup and depends on specific configurations that define how devices react to traffic from those with a RED status.

Endpoints typically operate independently of the routing layer regarding health status indications; they will generally handle traffic based on more traditional network rules unless explicitly configured otherwise. Therefore, without specific configurations that dictate how to handle traffic from devices with RED health statuses, the statement fails to hold true. This leads to the conclusion that the correct answer to the question is indeed false.