DNS settings for DCs in remote sites
Not quite.
Every DC/DNS server hosting AD-integrated zones should contain '127.0.0.1' in its list of DNS servers, but only as the last entry.
Ideally, you want the "Preferred DNS" to be a different DC in the same site, followed by a different DC in a different site if possible, and then localhost at the end of the list. In your case where you only have 1 DC in one site, go ahead and make the Preferred DNS server one of the DCs in the other site.
Source: Microsoft Windows Server Best Practices Analyzer.
PS - Bonus reading: Search for "active directory island problem"