The series given in the question is evidently date series in the format of date/month/year. The pattern is as follows:

4/12/95 - subtracts 3 days from the first day of the next month.

1/1/96 - the first day of the next month.

29/1/96 - subtracts 2 days from the first day of the subsequent month.

26/2/96 - subtracts 1 day from the first day of the incoming month.

Therefore, following the pattern:

Next term should be the first day of the next month (March 1996), i.e. 1/3/96, but following the increasing subtraction pattern, we should subtract 0 days, which refers to 1/3/96 exactly.

Option 1, 24/3/96, subtracts 7 days, which does not fit the pattern.

The correct answer is Option 2, 1/3/96, it appropriately follows the sequence order.

Option 3, 26/3/96, subtracts 5 days, which again, does not obey the pattern.

And finally, Option 4, 27/3/96, subtracts 4 days, which is also not correct