The correct answer is option 3: Sitting Near. The term `Upanishad` is derived from the Sanskrit words `upa` which means `near` and `shad` which means `to sit`. Therefore, the term `Upanishad` literally implies `sitting near`. In the ancient Indian tradition, Upanishads were a collection of texts that contained profound philosophical teachings and spiritual insights. They were typically taught by a guru or spiritual teacher to his students, who would sit near him to receive this knowledge and wisdom. The Upanishads are considered to be the final portion of the Vedas, the ancient Indian scriptures. They explore profound questions about the nature of reality, human existence, and the ultimate purpose of life. Thus, option 3 accurately represents the literal meaning of the term `Upanishad`.