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      Question

      Read the passage depicting a systemic problem below.

      Assuming everything in the statement to be true, decide which of the suggested courses of action logically follow(s) for implementation. Statement: A major domestic technology conglomerate was recently penalized β‚Ή2,500 crore by the Data Protection Board for illegally harvesting and selling sensitive user data through unverified third-party analytics firms. The widespread breach has severely shaken consumer trust in the nation’s digital economy, and international market analysts warn that unless robust systemic governance reforms are implemented immediately, global venture capital firms may aggressively pull out their investments from the country's tech sector. Suggested Courses of Action: 1. The regulatory authority should mandate highly stringent data-mapping disclosure norms and enforce mandatory annual data safety audits by independent external firms for all listed technology companies. 2. Individual internet users should be actively discouraged from engaging with digital platforms or online banking and directed instead to conduct all financial transactions through physical, paper-based branch banking. 3. The data protection authority should establish a robust, legally insulated whistleblower protection framework and provide financial incentives for tech industry insiders who report corporate data malfeasance.
      A Only 1 and 2 Correct Answer Incorrect Answer
      B Only 2 and 3 Correct Answer Incorrect Answer
      C Only 1 and 3 Correct Answer Incorrect Answer
      D All 1, 2, and 3 Correct Answer Incorrect Answer
      E Only 1 Correct Answer Incorrect Answer

      Solution

      Analysis: The premise outlines a critical crisis where systemic corporate data fraud has undermined investor confidence, creating an immediate risk of massive capital flight from the technology market. To resolve this, a valid course of action must directly correct the regulatory oversight loopholes or restore market integrity. Course of Action 1 follows logically. The core problem stems from listed companies engaging in unauthorized data exploitation. Forcing these listed technology firms to comply with stricter disclosure norms and undergo independent external audits directly addresses the root cause of the crisis, adding transparency and re-establishing trust for global investors. Thus, 1 is an apt response. Course of Action 2 is inappropriate. Telling consumers to completely abandon digital commerce and revert to archaic, paper-based physical banking does absolutely nothing to fix or penalize corporate technology fraud. Instead, intentionally dismantling the digital consumer base would severely damage the domestic tech ecosystem, accelerating the very collapse that analysts are warning about. Thus, 2 is counterproductive and does not follow. Course of Action 3 follows logically. Because complex, high-tech data corporate fraud is frequently obscured inside deep internal networks, creating a safe whistleblower protection framework with financial incentives encourages internal employees to expose wrongdoing early. This acts as a powerful preventative tool and shows international markets that the regulatory landscape is serious about enforcing compliance. Thus, 3 is an apt response. Since Courses of Action 1 and 3 provide direct, structural, and rational remedies to address the governance failure and safeguard market confidence, C is the correct answer choice.

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