The correct answer is option 1: 49 percent through the automatic route.

In 2017, as per the policy applicable in India, the foreign direct investment (FDI) permitted in the defense sector is up to 49 percent. The term "automatic route" refers to a method of FDI where the investor does not require prior approval from the government and can invest directly in the sector.

Option 2 states that FDI is permitted up to 26 percent through the government route. The government route refers to a method of FDI where prior approval from the government is required before making any investment. This option is not correct as the limit for FDI in the defense sector in 2017 was higher than 26 percent.

Option 3 states that FDI is permitted up to 26 percent through the automatic route and beyond that, up to 49 percent through the government route. This option is not correct as the limit for FDI in the defense sector in 2017 was 49 percent through the automatic route, not 26 percent.

Option 4 states that FDI is permitted up to 75 percent through the automatic route. This option is not correct as the limit for FDI in the defense sector in 2017 was