Option 1 -> Describes international loans with expected repayment and interest, not unilateral transfers.
Option 2 -> Refers to bilateral trade involving exchange of goods and services, not one-way transfers.
Option 3 -> Correctly defines unilateral transfers as one-sided payments without expectation of return.
Option 4 -> Describes foreign portfolio investments which expect returns, not unilateral transfers.
Hence, Option 3: Payments made by one party without expecting any return in the future -> Unilateral transfers are one-sided transactions recorded in the current account of Balance of Payments. They include remittances from workers abroad, foreign aid, gifts, grants, and donations where the donor does not expect any goods, services, or repayment in return. These are pure transfers of purchasing power from one country to another without any quid pro quo arrangement. -> correct