(A) "The management will phase the closure..." - "Phase" (IV) means to carry out something in gradual stages.
(B) "He appeared as if nothing could faze him." - "Faze" (III) means to disturb or unsettle someone.
(C) "The label will peel off..." - "Peel" (II) means to come off in strips or layers.
(D) "A peal of thunder broke overhead." - "Peal" (I) is a loud sound, especially of thunder or bells.
Hence, Option 3: (A) - (IV), (B) - (III), (C) - (II), (D) - (I) -> These homophones are commonly confused: "phase/faze" sound identical but phase relates to stages while faze means to disturb; "peel/peal" sound the same but peel refers to removing layers while peal refers to loud sounds -> correct