Microsoft Installation, Storage, and Compute with Windows Server(70-740)

You have a server named Server1 that runs Windows Server 2016.
You plan to use Windows Server Backup to back up all of the data on Server1.
You create a new volume on Server1.
You need to ensure that the new volume can be used as a backup target.
The backup target must support incremental backups.
Solution: You mount the volume to C:\Backup, and you format the volume by using FAT32.
Does this meet the goal?