'In case the debts are not paid within a month, interest at a 12% rate will be levied.'

To what element of planning does this saying point out?

Rule

The correct answer is option 1 i.e. rule.

'In case the debts are not paid within a month, interest at a 12% rate will be levied.'- It is a rule. The idea is that if debts aren't paid within a month, interest will be charged—a clear and specific guideline. So, in this case, it points towards the element of planning that involves rules.

Here's why:
Rule: A rule is a specific guideline that defines an action or inaction with clear consequences for non-compliance. In this case, the statement establishes a clear rule - if debts are not paid within a month, a 12% interest penalty will be applied.
Procedures: Procedures outline a sequence of steps to be followed for a specific task. This statement doesn't detail steps for debt collection.
Method: A method refers to a general approach to completing a task. This statement focuses on a specific consequence, not a general approach.
Policy: Policies are broader/general guidelines that set the direction for decision-making. Policies are general statements that guide thinking or channelise energies towards a particular direction. Policies provide a basis for interpreting strategy which is usually stated in general terms. Policies define the broad parameters within which a manager may function. The manager may use his/her discretion to interpret and apply a policy. The given statement defines a specific consequence, not a general direction.