Option 1 -> This sequence starts with supply curve shift, but logically foreign investment must come first to cause the shift.
Option 2 -> This sequence incorrectly places appreciation before exchange rate falling and supply curve shift.
Option 3 -> This follows the correct economic cause-effect chain: investment → supply increase → curve shift → rate fall → appreciation.
Option 4 -> This sequence illogically starts with appreciation before foreign investment increases supply.
Hence, Option 3: (D), (A), (B), (C) -> The correct sequential impact is: First, foreign investment increases the supply of foreign exchange (D). This causes the supply curve to shift rightward (A). With increased supply, the price of foreign currency falls, meaning the exchange rate falls (B). A falling exchange rate means fewer rupees are needed to buy foreign currency, indicating rupee appreciation (C). This is the logical cause-and-effect chain in foreign exchange markets. -> correct