In this question, we are given two sets of lists. List I mentions the water bodies connected, and List II mentions the corresponding strait/canal. We need to match the countries correctly using the given codes.

Let`s analyze the options:

Option 1: A-2, B-5, C-4, D-3

This option suggests that the Arctic Ocean and Pacific Ocean are connected by the Straits of Dover, which is incorrect. This option is not correct.

Option 2: A-3, B-4, C-1, D-2

According to this option, the Arctic Ocean and Pacific Ocean are connected by the Bearing Straits, which is accurate. Additionally, the Red Sea and Mediterranean Sea are connected by the Suez Canal, which is also correct. However, it places the Caribbean Sea and Pacific Ocean as connected by the Panama Canal, which is incorrect. This option is not correct.

Option 3: A-3, B-5, C-4, D-2

This option suggests that the Arctic Ocean and Pacific Ocean are connected by the Bearing Straits, which is correct. The Red Sea and Mediterranean Sea are connected by the Suez Canal, which is also accurate. Moreover, the Caribbean Sea and