Option 1 -> Currency held by public is part of M1, which is included in M3.
Option 2 -> Demand deposits with commercial banks are part of M1, which is included in M3.
Option 3 -> Savings deposits with Post Office savings banks are part of M2, not M3.
Option 4 -> Net time deposits of commercial banks are what distinguish M3 from M1.
Hence, Option 3: Savings deposits with Post Office savings banks -> M3 is defined as M1 (currency with public + demand deposits + other deposits with RBI) plus net time deposits with commercial banks. Savings deposits with Post Office savings banks are actually a component of M2, not M3. M3 focuses on commercial banking system deposits, while postal savings are excluded from this broader monetary aggregate. This distinction is important as M3 represents the aggregate monetary resources in the economy through the commercial banking channel. -> correct