Hi,
Thank you for your post!
You need to install Azure AD Connect on Windows Server 2012 R2 with ADFS to use Single Sign On. If you don't need Single Sign On you can run the tool on Windows Server 2008 R2 and configure ADFS.
I don't think there is any road block with the version of ADFS that use with Azure AD Connect. You can refer to the discussion here -
https://social.msdn.microsoft.com/Forums/en-US/9ee2ed16-5b16-4ff3-91ae-04cceb3db4b5/ad-fs-20-and-azure-ad-connect-compatibility?forum=WindowsAzureAD
Hope that helps!
Best Regards
Sadiqh Ahmed
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