I too answered 'no' based upon the example...perhaps the example shouldn't have been given and just the question asked, but if you ran the given statement, it would certainly fail due to:
update table <-- [table]
set a1.coulmn=a2.column <-- COULMN [misspelled]
from table1 as a1, table2 as a2
where a1.colum1 = a2.column2 <-- COLUM [misspelled]
Was this ever QA'd? If I was handed this script to apply to production, I wouldn't have to see it fail to kick it back to the author and tell them to clean it up...