Read the passage carefully and answer the questions based on the passage:

The demographic advantage or 'dividend' to be derived from the age structure of the population is due to the fact that India is (and will remain for some time) one of the youngest countries in the world. A third of India's population was below 15 years of age in 2011. In 2020, the average Indian was only 29 years old, compared with an average age of 37 in China and the United States, 45 in Western Europe, and 48 in Japan. This implies a large and growing labor force, which can deliver unexpected benefits in terms of growth and prosperity.

What can India do to convert its Demographic Dividend into actual growth?

Increase employment opportunities

The correct answer is Option 2: Increase employment opportunities

The passage states that the demographic dividend implies a "large and growing labor force" which "can deliver unexpected benefits in terms of growth and prosperity." To convert this potential into actual growth, the large labor force must be gainfully employed. Therefore, increasing employment opportunities is the necessary step to utilize this demographic advantage.