Explanation:

To solve this problem:

- Average of five consecutive odd numbers: If the numbers are $n,n+2,n+4,n+6,n+8$, their average is $m=\frac{5n+20}{5}=n+4$.

- Including the next three odd numbers: The next odd numbers are $n+10,n+12,n+14$. Now consider eight numbers: $n,n+2,n+4,n+6,n+8,n+10,n+12,n+14$.

- Average of eight numbers: $\frac{8n+56}{8}=n+7$.

- Increase in the average: $(n+7)-(n+4)=3$.

Now, let's consider the options:

- Option 1: Increase is 3.

- Option 2: Increase is 0.

- Option 3: Increase is 17.

- Option 4: Increase is 8.

The correct increase in the average is 3. Therefore, Option 1 (3) is the correct choice.

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