Explanation:

To determine the correct option, let's break down the problem:

- Simple Interest (SI) Formula: SI = Principal × Rate × Time.

- For 2 years, at 7% per annum:

SI = P × 7/100 × 2 = 0.14P.

- Compound Interest (CI) Formula: CI = Principal × (1 + Rate/100)^Time - Principal.

- For Rs1,000, at 10% per annum, compounded annually, for 2 years:

CI = 1000 × (1 + 10/100)^2 - 1000

= 1000 × 1.1^2 - 1000

= 1000 × 1.21 - 1000

= 1210 - 1000

= Rs210.

- The given SI is double the CI:

0.14P = 2 × 210

0.14P = 420

P = 420 / 0.14

P = Rs3,000.

- Correct Option:

- Option 1: Rs1,000

- Option 2: Rs2,000

- Option 3: Rs3,000

- Option 4: Rs4,000

: Option 3 - Rs3,000.