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The question is about the process of selection of the Prime Minister in a certain country, where the ruling prince has the role of choosing the PM from a set of three candidates which the President of France offers.
Option 1: San Marius is incorrect as there is no such recognized country by that name.
Option 2: Liechtenstein is an incorrect answer because its Head of Government i.e., the Prime Minister is appointed by the reigning Prince on the proposal of the Parliament.
Option 3: Malta - The Prime Minister of Malta is appointed by the President of Malta. The French president doesn`t have any role in this process. Therefore, this option is incorrect.
Option 4: Monaco - Monaco follows the process described in the question. In Monaco, the reigning prince selects his prime minister from a list of three French nationals that are proposed by the French government. So, this option is correct.