DMARC: Remote end passes failed mail

For testing, my DMARC DNS record currently says to quarantine failed 
mail.  However, I get some reports like the one below which suggest that 
while DKIM and SPF both fail, the reporter identifies the mail as 
neutral and takes no action.  Will changing disposition from 
“quarantine” to “reject” fix this, or is it my problem or a remote-end 
problem?  Other suggestions?  Cheers,
--
Gib Henry

------------------------------------------------------------------------

<record>
<row>
<source_ip>31.45.224.4</source_ip>[Croatia, ∴ illegitimate]
<count>1</count>
<policy_evaluated>
<disposition>quarantine</disposition>
<dkim>fail</dkim>
<spf>fail</spf>
</policy_evaluated>
</row>
<identifiers>
<header_from>gibhenry.com</header_from>
</identifiers>
<auth_results>
<spf>
<domain>gibhenry.com</domain>
<result>neutral</result>
</spf>
<dkim>
<domain>gibhenry.com</domain>
<result>none</result>
</dkim>
</auth_results>
</record>