Explanation:

- Understanding Nil Balance:

- In accounting, when the total of debits equals the total of credits, it indicates that the account is balanced and there is no outstanding amount on either side.

- This condition is often referred to as having a "nil" balance, indicating that debits and credits are in equilibrium.

- Option Analysis:

- Option 1 - Debit balance: Implies more debits than credits, which is not applicable here.

- Option 2 - Credit balance: Implies more credits than debits, which is also not applicable here.

- Option 3 - Nil balance: Correct, as equal debits and credits reflect a zero or nil balance.

- Option 4 - Current balance: This term is vague and doesn’t specifically reflect equality of debits and credits.

- The correct answer is nil balance from Option 3.