The correct answer is option 3, Greenland. Greenland is recognized as the world`s largest island. It is located in the North Atlantic Ocean and is an autonomous territory of Denmark. It has an area of approximately 2.2 million square kilometers, making it larger than countries like Australia and Mexico. Option 1, New Guinea, is the second-largest island in the world, located in the Western Pacific Ocean. Option 2, Madagascar, is the fourth-largest island in the world, located in the Indian Ocean off the southeastern coast of Africa. Option 4, Iceland, is a Nordic island country located in the North Atlantic Ocean, but it is much smaller in size compared to Greenland. Therefore, the correct answer is option 3, Greenland.