Explanation:

- In 1991, India's economic reforms included the deregulation of the industrial sector.

- Option 1: Reserved: This means goods or industries that were held specifically for the small-scale industry sector, limiting competition.

- Option 2: De-reserved: This refers to the removal of reservations, allowing goods previously limited to small-scale sectors to be produced by larger industries as well. This option is correct.

- Option 3: Both A and B: This option implies both reservation and de-reservation occurred, which is contradictory.

- Option 4: None of the above: This would suggest neither process happened, which contradicts historical records of deregulation efforts.