The average income of a family of 5 is Rs. 1000 each, thus the total income of the family becomes Rs. 5000 per month. Now, the income of one person has increased by Rs. 12,000 per year. If we break it down per month, that equates to an increase of Rs. 1000 per month (Rs. 12,000/12 months = Rs. 1000).

For option-1: After adding this Rs. 1000 to the total family income, the new total becomes Rs. 6000 per month. The new average income per person will be Rs. 1200 (Rs. 6000/5 persons = Rs. 1200).

For option-2 (Rs 1600), option-3 (Rs 2000), and option-4 (Rs 3400), if we multiply by 5 and add back the Rs. 1000 increase, none of them results in the new total family income of Rs. 6000 for these options to be viable. Therefore, these options are incorrect, and the correct answer remains to be option-1: Rs. 1200, which is the new average income per person given the