The goal of the ExaWind project is to enable predictive simulations of wind farms comprised of many megawatt-scale turbines situated in complex terrain. Predictive simulations will require computational fluid dynamics (CFD) simulations for which the mesh resolves the geometry of the turbines and captures the rotation and large deflections of blades. Whereas such simulations for a single turbine are arguably petascale class, multi-turbine wind farm simulations will require exascale-class resources. The primary physics codes in the ExaWind project are Nalu-Wind, which is an unstructured-grid solver for the acoustically incompressible Navier-Stokes equations, and OpenFAST, which is a whole-turbine simulation code. The Nalu-Wind model consists of the mass-continuity Poisson-type equation for pressure and a momentum equation for the velocity. For such modeling approaches, simulation times are dominated by linear-system setup and solution for the continuity and momentum systems. For the ExaWind challenge problem, the moving meshes greatly affect overall solver costs as reinitialization of matrices and recomputation of preconditioners is required at every time step. This milestone represents the culmination of several parallel development activities towards the goal of establishing a full-physics simulation capability for modeling wind turbines operating in turbulent atmospheric inflow conditions. The demonstration simulation performed in this milestone is the first step towards the "ground truth" simulation and includes the following components: neutral atmospheric boundary layer inflow conditions generated using a precursor simulation, a hybrid RANS/LES simulation of the wall-resolved turbine geometry, hybridization of the turbulence equations using a blending function approach to transition from the atmospheric scales to the blade boundary layer scales near the turbine, fluid-structure interaction (FSI) that accounts for the complete set of blade deformations (bending, twisting and pitch motion, yaw and tower displacements) by coupling to a comprehensive turbine dynamics code (OpenFAST). The use of overset mesh methodology for the simulations in this milestone presents a significant deviation from the previous efforts where a sliding mesh approach was employed to model the rotation of the turbine blades. The choice of overset meshes was motivated by the need to handle arbitrarily large deformations of the blade and to allow for blade pitching in the presence of a controller and the ease of mesh generation compared to the sliding mesh approach. FSI and the new timestep algorithm used in the simulations were developed in partnership with the A2e High-Fidelity Modeling project. The individual physics components were verified and validated (V%V) through extensive code-to-code comparisons and with experiments where possible. The detailed V&V efforts provide confidence in the final simulation where these physics models were combined together even though no detailed experimental data is available to perform validation of the final configuration. Taken together, this milestone successfully demonstrated the most advanced simulation to date that has been performed with Nalu-Wind.