Explanation:

Both codes 1&3 are correct.

• Higher fuel prices take a toll on the consumer. Rise in fuel prices may eat up a major portion of income and they also lead to inflation. 
• Hence, there is a reduction in discretionary spending. The rise in oil prices make the situation worse for the government as well. 
• Every $10 increment leads to an increase of about $10 billion in current account deficit. Rising oil prices also reduce the GDP by about 0.5% for every $10 increase. 
• Also as India is largely dependent on import for its fuel requirement , it will improve the import bill of the country. Increase in current account deficit (CAD) will have a negative impact on the value of rupee. 

Hence option 3rd is correct.