The correct answer is option 2, which states that the public expenditure on education in India (by the Centre and the States) as a percentage of GDP is between 3 to 4 per cent.

Explanation:

Public expenditure on education refers to the amount of money the government allocates towards education-related activities and programs. In India, this includes both the central government`s expenditure as well as the state governments` expenditure.

The percentage of GDP is used as a measure to understand the level of investment in education relative to the overall economy. It indicates the proportion of the country`s total goods and services produced (GDP) that is dedicated to education.

Based on the given options, the correct answer is option 2, which suggests that the public expenditure on education in India is currently between 3 to 4 per cent of GDP. This means that for every hundred rupees generated in the economy, around 3 to 4 rupees are spent on education.

This level of investment in education is important as it reflects the priority given to the sector and its role in the development and progress of the country. Higher investments in education can lead to improved infrastructure, quality of education, and accessibility to education for all.