Explanation:

- When interest is compounded half-yearly, the formula becomes \( Q = P \left(1 + \frac{R/2}{100}\right)^2 \).

- When interest is compounded annually, the formula becomes \( Q = P \left(1 + \frac{S}{100}\right) \).

- Both scenarios result in the same amount \( Q \) after one year.

- Comparing the two formulas for \( Q \), \( \left(1 + \frac{R/2}{100}\right)^2 = 1 + \frac{S}{100} \).

- The equation essentially balances the benefits of more frequent compounding at a lower rate with annual compounding at a higher rate.

- In general, half-yearly compounding is more efficient, meaning \( 2R/2 < S \).

Option 3: R < S.