Explanation:

- The volume of a cylinder is given by the formula \(V = \pi r^2 h\), where \(r\) is the radius and \(h\) is the height.

- Initially, let's assume the original radius is \(r\) and the height is \(h\).

- With a 60% increase in the radius, the new radius \(r_1\) becomes \(1.6r\).

- With a 20% decrease in the height, the new height \(h_1\) becomes \(0.8h\).

- The new volume \(V_1\) is calculated as \(V_1 = \pi (1.6r)^2 (0.8h)\).

- Simplifying gives: \(V_1 = \pi \cdot 2.56r^2 \cdot 0.8h = \pi \cdot 2.048r^2 h\).

- The percentage increase in volume is \(((2.048 - 1) / 1) \times 100\%\).

- This equals \(104.8\%\).

- Correct Answer: Option 3, 104.8%