Explanation:

- The World Bank's report emphasizes India's potential in advancing towards a Knowledge Economy. The correct answer is: Option 1: Knowledge economy. This means leveraging skills, innovation, and technology to drive growth.

- Option 2: Agrarian Economy refers to a focus on agriculture-based industry, which isn't the central advice of the report.

- Option 3: Industrial Economy is based on manufacturing and heavy industries, which India has partly transitioned from.

- Option 4: A mix of the above three suggests a blended approach but doesn’t align with the specific advice to focus on a Knowledge Economy.