Explanation:

- When the price of an item is reduced by 20%, its new price is 80% of the original.

- Sales increase by x%, meaning the sales units become 1 + (x/100) times the original sales.

- Revenue initially is the original price times original sales.

- Due to a 20% price cut and x% sales increase, revenue becomes 0.8 times original price and 1 + (x/100) times original sales, resulting in an increased revenue by 60%.

- The equation for revenue: 0.8 * (1 + x/100) = 1.6, solving gives x = 100.

The correct answer is:

Option: 3 - 100