Answer: The answer is True.
Explanation:
In the TCP/IP suite, when travelling through a physical network, information comes encapsulated in frames, which format depends on the Data Link Layer Protocol used.
For Ethernet networks, there is a special field, called TYPE, that once read by the software, informs to the Ethernet software to which higher layer must send the packet, once stripped the frame header.
This field TYPE is known as a "demultiplexing key" for the Data Link Layer Protocol.
At the IP level, the IP header contains a similar field, called PROTOCOL in IPv4 and NEXT HEADER in IPv6, which acts in the same way, telling to the IP software which is the higher layer to send the datagram, once stripped the IP Header.