On dissolution of a firm, bank overdraft is transferred to:

The correct answer is Option (3) → Realisation Account

On dissolution, every asset (other than cash, bank and fictitious assets) and every outside liability is closed by transfer to the Realisation Account. A bank overdraft is money the firm owes the bank, so it is an outside liability and goes to the credit side of the Realisation Account; its payment is later debited there.