Explanation:

- The Reserve Bank of India's (RBI) third bi-monthly monetary policy review for 2019-20 indicated that retail inflation, based on the Consumer Price Index (CPI), was likely to stay within its target of 4%, but could rise, with the upper tolerance level set at 6%.

- The expected range for inflation, according to RBI projection, was about 3.1-3.7% for H1 and 3.5-3.7% for Q3 (2019-20).

- RBI mentioned that inflation should remain below 4% but flagged risks that could push it upward, especially close to but not exceeding 6%.

- Reviewing the options:

- 4 per cent – is the target.

- 5 per cent – slightly above target, but no such specific projection in the policy.

- 6 per cent – upper tolerance and more in line with "can rise up to" in official statements.

- 7 per cent – above permissible limits.

- None of the above – not correct.

Correct Answer: Option 3, 6 per cent