The assignment involves configuring an SSH server on node3 to run on a non-standard port, setting up a firewall on node2 to implement security policies and restrict access to services, testing the firewall and servers, and saving the rules. The student is also required to take screenshots of specific scenarios and include them in their report. Additionally, they must discuss the benefits and limitations of using VPNs, web proxies, and Tor for privacy protection while web browsing.