Explanation:

- The manufacturer marks the article at Rs 1,200.

- A 10% discount is given to the trader. This discount equals Rs 120 (10% of 1,200).

- The selling price after this discount is Rs 1,080 (1,200 - 120).

- The trader receives a further 5% discount for paying in cash.

- This additional discount is calculated on Rs 1,080, resulting in Rs 54 (5% of 1,080).

- Thus, the final amount paid by the trader is Rs 1,026 (1,080 - 54).

Option 1: 1,026

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