Layer 2, Data Link.
Network control protocol
LCP sets up the PPP connection and its parameters. NCP handles higher layer protocol configurations.
Network Control Protocol is uses to identify the Network layer protocol used in the packet
error control and recovery flow control ppp(point to point protocol transfering from physical layer to network entities
there may be the issue with the layer 2 protocol like hdlc or ppp is not configured or wrongly configured if the interface is serial interface.
pp chap
It is work at Network layer.
Layer 1 - the physical layer
Internet (PPP) Accounts A PPP (Point-to-Point Protocol) account is an Internet account that uses the PPP communications protocol. PPP is the most popular type of Internet account because the most popular software--Internet Explorer, Netscape Navigator, Outlook Express, Eudora, and other programs--is designed to work with PPP accounts. Occasionally, you may run into a SLIP (Serial Line Internet Protocol) or CSLIP account (Compressed SLIP), which are old, less-reliable protocols than PPP, but which work the same way. This book refers to PPP, CSLIP, and SLIP accounts as dial-up Internet accounts. An Internet service provider (ISP) is an organization that provides Internet accounts, usually PPP accounts, but occasionally UNIX shell accounts. All ISPs provide dial-in accounts using regular phone lines, and many also provide ISDN and DSL connections
Application Layer
Layer 2 , Data Link Layer