The correct answer is option 3, Monopolistic competition. In a market with monopolistic competition, there are a large number of sellers offering slightly differentiated but similar products. This means that each seller can have some control over the price and quantity of their product, but they still face competition from other sellers.

In a monopolistic competition market, sellers try to differentiate their products through branding, quality, design, or other features to attract customers and create a level of product differentiation. This differentiation gives sellers some power to influence price and demand for their product.

Option 1, Perfect competition, does not fit the description given in the question as it implies that products are identical and there are no barriers to entry or exit for sellers.

Option 2, Monopoly, refers to a market with only one seller and no competition.

Option 4, Oligopoly, refers to a market with a small number of dominant sellers who can impact the market conditions and competition. This is different from the scenario described in the question.

Therefore, the correct answer is option 3, Monopolistic competition.