I beleive the context of the question was whether the above said policy statement will set community WXA for prefixes from prefix list WXA and accept the same.
"It is incorrect as it is ,as each are different terms and cannot be evaluated individually"
The above said statement was also explained based on the context of the problem .What was mentioned was since term 2 and term 3 was not related to term 1, it cannot be evaluated (term 2 matches to all prefixes , term 3 matches to all prefixes , whereas term 1 matches to only to prefixes in prefix list ABC )
The mentioned terms will set community WXA, which will not serve the purpose , as the objective is to set community WXA only to prefix list ABC .
May be I have worded things in a different way, but this what I meant by the explanation