Neeta is teaching relations to her daughter. She says,

Solution

Neeta's mother's mother → Neeta's grandmother. Grandmother's daughter-in-law → Wife of grandmother's son (Neeta's uncle or Neeta's father). Daughter-in-law's daughter → The daughter of this woman, which means she is Neeta's sibling or cousin. Since the question does not specify whether the daughter-in-law is Neeta’s mother or her uncle’s wife, there are two possibilities: If the daughter-in-law is Neeta’s mother, then the daughter is Neeta herself (which is not relevant here). If the daughter-in-law is the wife of Neeta’s uncle, then the daughter is Neeta’s cousin. So, the correct answer is: (3) Cousin.