Option 1 -> Stabilization Function deals with maintaining economic stability, controlling inflation and unemployment.
Option 2 -> Allocative Function deals with efficient resource allocation and provision of public goods.
Option 3 -> Redistribution Function deals with changing income distribution to achieve fairness in society.
Option 4 -> Transactory Function is not a recognized government function in public finance.
Hence, Redistribution function -> The redistribution function is one of the three main functions of government in public finance (along with allocation and stabilization). It specifically addresses income and wealth inequality by using fiscal tools like progressive taxation, transfer payments, subsidies, and welfare programs to redistribute resources from higher-income groups to lower-income groups, achieving a distribution that society considers equitable or 'fair'. This helps reduce economic disparities and promotes social justice. -> correct