Read the passage carefully and answer the following questions.

The South Asian Association for Regional Cooperation (SAARC) Charter Day is observed every year on 8th December. On this day in 1985, SAARC Charter was adopted in Dhaka, during the first summit of the group. This year marks the 38th anniversary of the regional group: The charter was signed by the Leaders of SAARC countries, the heads of state or government of Bangladesh, Bhutan, India, Maldives, Nepal, Pakistan and Sri Lanka at the First SAARC Summit held in Dhaka, Bangladesh.

The prime focus of SAARC is to work collectively to promote the welfare of people in the region and to improve their standards of living through social progress and economic development. The aim of SAARC members is to promote stability, peace and progress in the region. SAARC has organised 18 summits since 1985. These specialised bodies promote regional cooperation by SAARC members in various fields.

A new chapter of peace and cooperation might evolve in South Asia if all the countries in the region allow free trade across the borders. This is the spirit behind the idea of SAFTA. The Agreement was signed in 2004 and came into effect on 1 January 2006. SAFTA aims at lowering trade tariffs. But some of our neighbours fear that SAFTA is a way for India to 'invade' their markets and to influence their societies and politics through commercial ventures and a commercial presence in their countries. India thinks that there are real economic benefits for all from SAFTA and that a region that trades more freely will be able to cooperate better on political issues. Some in India think that SAFTA is not worth the trouble since India already has bilateral agreements with Bhutan, Nepal, and Sri Lanka.

The spirit behind the idea of SAFTA was:

A new chapter of peace and cooperation might evolve in South Asia, if all the countries in the region allow free trade across the borders

The correct answer is Option (2) - A new chapter of peace and cooperation might evolve in South Asia, if all the countries in the region allow free trade across the borders

As per the passage:

A new chapter of peace and cooperation might evolve in South Asia if all the countries in the region allow free trade across the borders. This is the spirit behind the idea of SAFTA. The Agreement was signed in 2004 and came into effect on 1 January 2006.