Explanation:

Let's break down the solution to find out the correct cost price of the item:

- The marked price of the item is Rs5,800.

- Ravi allows a discount of 20% on the marked price.

- So, the selling price is 80% of the marked price.

- Selling price = 0.8 × 5,800 = Rs4,640.

- Ravi earns a profit of 25%.

- This means the selling price is 125% of the cost price.

- So, cost price = Selling price / 1.25 = 4,640 / 1.25 = Rs3,712.

Given these calculations, the cost price is Rs3,712.

- Option 1: Rs3,625 (Incorrect)

- Option 2: Rs3,724 (Incorrect)

- Option 3: Rs3,720 (Incorrect)

- Option 4: Rs3,712 (Correct)