Explanation:

Let's break down the problem step by step:

- Cost Price (CP): Let's assume the cost price of the article is $100.

- Marked Price (MP): The marked price is 60% more, so MP = $100 + 60% of $100 = $160.

- Desired Selling Price (SP): To earn a 12% profit, the selling price should be 112% of the cost price, i.e., 112% of $100 = $112.

- Discount Required: The discount is the difference between the Marked Price and the Selling Price, i.e., $160 - $112 = $48.

- Discount Percentage:

$$

\left( \frac{\text{Discount}}{\text{Marked Price}} \right) \times 100 = \left( \frac{48}{160} \right) \times 100 = 30\%

$$

Based on the calculations:

- Option 1: 12% – Too low

- Option 2: 25% – Not enough

- Option 3: 30% – Correct

- Option 4: 60% – Too high