Explanation:

Let's calculate the amount received from Policy B step by step:

- Calculate Interest from Policy A:

- Principal = Rs 10,500

- Rate = 12%

- Time = 10 years

- Simple Interest (SI) = (Principal × Rate × Time) / 100

- SI from A = (10,500 × 12 × 10) / 100 = Rs 12,600

- Interest Invested in Policy B:

- 1/3 of Rs 12,600 = Rs 4,200

- Calculate Amount from Policy B:

- Principal for B = Rs 4,200

- Rate = 12%

- Time = 5 years

- SI from B = (4,200 × 12 × 5) / 100 = Rs 2,520

- Total amount from B = Principal + SI = 4,200 + 2,520 = Rs 6,720

?? Answer: Option 3 - Rs 6,720