Option 1 -> 120 - This would incorrectly suggest nominal GNP is higher than real GNP.
Option 2 -> 83.33 - Calculated as (Nominal GNP/Real GNP) × 100 = (5000/6000) × 100.
Option 3 -> 100 - Would mean nominal and real GNP are equal, which is not the case here.
Option 4 -> 125 - This incorrectly inverts the ratio calculation.
Hence, Option 2: 83.33 -> The GNP deflator formula is (Nominal GNP/Real GNP) × 100. Substituting the values: (5000/6000) × 100 = 83.33. A deflator below 100 indicates that prices in the current year are lower than the base year prices, or that the economy has experienced deflation relative to the base year. -> correct