Explanation:

- Current Liability: These are obligations a company must pay within a year. Dividend arrears on preference shares aren't typically classified here unless they are due immediately.

- Contingent Liability: These are potential liabilities that might occur based on the outcome of a future event. Dividend arrears don't fall into this category because they are definite, not potential.

- Commitments: Arrears of preference dividend is considered a commitment by the company. It represents an obligation to pay unpaid dividends to preferred shareholders, and it must be fulfilled before any dividends are paid to common shareholders. While not always a liability on the balance sheet until declared, dividends in arrears must be disclosed in the notes to the financial statements. 

- Short-term Provision: Short-term provisions are liabilities a company earmarks to cover anticipated expenses or obligations expected within the next 12 months. These provisions account for things like legal claims, warranty obligations, or restructuring costs that need to be estimated and accrued

- Correct Answer: Comittment