Option 1 -> Incorrectly matches "personnel" with the letter sentence and "personal" with the water sentence, reversing their meanings.
Option 2 -> Incorrectly places "pale" (a color) for fetching water and "personal" for working staff, which are contextually wrong.
Option 3 -> Correctly matches: "personal" (private letter), "pail" (water bucket), "personnel" (employees), "pale" (face color).
Option 4 -> Incorrectly starts with "pale" for a letter and misaligns all other homonyms.
Hence, Option 3: (A) - (II), (B) - (IV), (C) - (I), (D) - (III) -> The letter was addressed "personal" (private), fetch a "pail" (bucket) of water, "personnel" (employees) seemed satisfied, face turned "pale" (lost color) when caught stealing -> correct