The correct answer is option 3, Tyrrhenian Sea. Indian Naval Ship INS Tabar recently took part in a two-day naval exercise with the Italian Navy in the Tyrrhenian Sea.

To better understand the options, let`s look at each sea mentioned:

1. Ionian Sea: The Ionian Sea is located in the Mediterranean Sea, between Greece and Italy. It is not the correct answer as the exercise did not take place here.

2. Adriatic Sea: The Adriatic Sea is located between the Italian Peninsula and the Balkan Peninsula. Although geographically close to Italy, the exercise did not occur here.

3. Tyrrhenian Sea: The Tyrrhenian Sea is located between the western coast of Italy and the islands of Corsica and Sardinia. This is the correct answer as the exercise involving INS Tabar and the Italian Navy was conducted here.

4. Mediterranean Sea: The Mediterranean Sea is a large body of water bordered by several countries, including Italy. While the Tyrrhenian Sea is a part of the Mediterranean, it is more specific to say that the exercise took place in the Tyrrhenian Sea rather than just the Mediterranean Sea.

In conclusion, the correct answer is the Tyrrhenian Sea