The United Nations Development Programme (UNDP) currently uses the indicator of Mean Years of Schooling to construct the Human Development Index (HDI). The HDI is a measure of a country`s overall development, taking into account factors such as life expectancy, education, and income.

Option 1: Level of Literacy is not the correct indicator used by UNDP to construct HDI. While literacy rates are important in assessing education levels, the UNDP specifically uses the indicator of Mean Years of Schooling, which takes into account the number of years of education completed by individuals in a country.

Option 2: Gross Enrolment Ratio is also not the correct indicator used by UNDP to construct HDI. This ratio represents the total number of enrolled students in a particular level of education, expressed as a percentage of the eligible age group. While this indicator provides information on access to education, it is not used by UNDP for constructing HDI.

Option 4: Dropout rate is not the correct indicator used by UNDP to construct HDI. Dropout rate reflects the percentage of students who leave school before completing a particular level of education. Although dropout rates are important for understanding educational outcomes, they are not used by UNDP to calculate HDI.

In summary, Mean Years