Explanation:

- The price of sugar has gone up by 14%. This means people are spending 14% more on the same amount of sugar.

- To ensure that the increase in expenditure is only 8%, people need to reduce their consumption.

- Let's say initially a person used to spend $100 on sugar.

- With a 14% price increase, the new cost for the same quantity is $114.

- To allow only an 8% increase in expenditure, the person should spend $108 ($100 + 8% of $100).

- The proportionate reduction in consumption can be calculated by finding the decrease in quantity needed to bring the cost down from $114 to $108.

- This is a reduction of $6 ($114 - $108) from the new price.

- The reduction percentage equals ($6 / $114) * 100% = approximately 5.26%.

- Rounded to one decimal place, this is 5.3%.

Option 3: 5.3% is correct.

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