Explanation:

To find the compound interest on Rs10,000 for 2 years at 5% per annum, compounded annually, we'll use the formula:

- Compound Interest Formula: A = P(1 + r/n)^(nt)

- P = Principal amount (Rs10,000)

- r = Annual interest rate (5% or 0.05)

- n = Number of times interest is compounded per year (1 for annually)

- t = Time in years (2)

- Calculating Total Amount (A):

- A = 10,000 * (1 + 0.05/1)^(1*2)

- A = 10,000 * (1.05)^2

- A = 10,000 * 1.1025

- A = Rs11,025

- Compound Interest:

- Compound Interest = A - P = 11,025 - 10,000 = Rs1,025

Based on this:

- Option 1: 11,025 - This is the total amount, not the interest.

- Option 2: 1,000 - Incorrect calculation of interest.

- Option 3: 1,025 - This is the correct compound interest.

- Option 4: 11,000 - Incorrect calculation of total amount and interest.