Explanation:

To find the cost of leveling the track, we need to calculate the area of the track, which is the area of the outer circle minus the area of the inner circle.

- Outer Circle Area: Use the formula \(\pi \times \text{radius}^2\). For the outer circle, it is \(\pi \times 29^2\).

- Inner Circle Area: Again use the formula \(\pi \times \text{radius}^2\). For the inner circle, it is \(\pi \times 23^2\).

- Track Area: Subtract the inner circle area from the outer circle area. So, \(\pi \times (29^2 - 23^2)\).

- Cost Calculation: Multiply the track area by the cost rate per square meter, which is 7.

Let's do the math:

- \((29^2 - 23^2) = (841 - 529) = 312\)

- Track Area = \(\pi \times 312\)

- Cost = \(\pi \times 312 \times 7\)

So the calculation is:

$$ \text{Cost} = 22/7 \times 312 \times 7 = 6864 \text{ Rs} $$

- Correct Answer: Option 3 - Rs 6,864