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When the active HSRP (Hot Standby Router Protocol) router fails, the standby router transitions to the active state. HSRP is designed to provide high availability for IP networks by allowing one router to act as the active router while another router stands by in case of failure. When the active router fails, the standby immediately takes over, ensuring seamless operation and minimal disruption to network services. This failover process is critical for maintaining network reliability and performance, allowing the standby router to assume the virtual IP address of the failed active router, thus enabling continued communication for network devices.

The other options present scenarios that do not accurately describe HSRP behavior. The network does not shut down; instead, it continues functioning with the standby router becoming active. There is no election process based on speed when the active router fails; the designated standby router is already predetermined in the HSRP configuration. Finally, the routers do not remain in their current state since the purpose of HSRP is to switch the standby router to active in the event of a failure, thus ensuring uninterrupted network service.