What will be the corrective action for defective material in the context of controlling function of Management?

Change in Quality Specifications for the material used

The correct answer is option 3- Change in Quality Specifications for the material used.

Why Option 3 is correct: If the materials being used are consistently defective or not meeting the required standards, the management must re-evaluate and "Change the Quality Specifications." This might involve setting stricter standards for suppliers, changing the grade of raw materials, or altering the technical requirements to ensure the final product meets the desired quality. 

Why Option 1 & 2 are incorrect: Simply changing the quantity of material or the price paid does not solve the underlying issue of the material being "defective." Buying more of a bad product (Quantity) or paying a different price for it does not fix the quality gap.

If the "Defect" is the deviation, the "Corrective Action" is to adjust the specifications or the procurement process to ensure future materials are up to standard.