Green accounting refers to a method of measuring a country`s national income that takes into account the environmental impact and damages caused by economic activities. It goes beyond traditional accounting methods, which only focus on monetary transactions.

Option 1, the total forest area of the country, is not directly related to green accounting. While forests are important for environmental preservation, green accounting considers a broader range of factors.

Option 2, the destruction of forest cover, is also not the sole focus of green accounting. While deforestation can have significant environmental consequences, green accounting also considers other forms of pollution and damage.

Option 3, pollution and environmental damage, is the correct answer. Green accounting takes into account the negative effects of pollution and environmental degradation caused by economic activities.

Option 4, the area of reclaimed fallow land, is not directly related to green accounting. Green accounting primarily focuses on measuring the environmental impact of economic activities, rather than the status of specific areas of land.

Overall, option 3 is accurate.