Net borrowing at home included which of the following?

directly borrowed from the public through debt instruments.

The correct answer is Option (1) → directly borrowed from the public through debt instruments.

Gross fiscal deficit = Net borrowing at home + Borrowing from RBI + Borrowing from abroad

Net borrowing at home includes that directly borrowed from the public through debt instruments (for example, the various small savings schemes) and indirectly from commercial banks through Statutory Liquidity Ratio (SLR).