Explanation:

- Option 1: Market Discipline:

This is the correct answer. The third pillar of the Basel II Accord is Market Discipline. It aims to enhance market transparency and encourage institutions to disclose risks, capital, and risk management practices.

- Option 2: Stare Decisis:

This is a legal principle meaning "to stand by things decided." It refers to the doctrine that courts follow precedents set by previous decisions.

- Option 3: Exchange Control:

This refers to regulations set by a government to restrict foreign exchange transactions.

- Option 4: Blue Sky Law:

These are state laws in the U.S. that protect investors from securities fraud.

- Option 5: Bundle of Rights:

This concept in property law refers to the rights associated with property ownership, such as the right to use, sell, or lease.

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