What does white colour in Indian National Flag Symbolises?

Peace and Truth

The correct answer is Option 2- Peace and Truth

On July 22, 1947 Tricolor was adopted as the national flag of independent India by constituent Assembly with some changes in the middle portion of the flag.
This tri-color flag had saffron colour at the top, white on the middle and green as its lowest band. All the three colors band are of equal size. Dharma chakra also known as Ashoka Chakra of Sarnath pillar is in navy blue colour and has replaced the charkha of the previous flag. Its length to breadth ratio is 3:2. There are 24 spokes of Dharma chakra which representats 24 hours of the day.

7.  The significance of saffron colour is courage and sacrifice, white symbolizes truth and peace while the green reflects faith and prosperity. Finally circuler motion of dharma chakra marks continuous cycle progress of nation along the 24 hours of the day.

The symbolic significance of the forms and colours used in the national flag is as follows:
Saffron – Represents sacrifice and courage
White – Represents truth and peace
Green – Represents chivalry and faith
Ashoka Chakra – Represents the dynamism of peaceful change
24 spokes in the Ashoka Chakra – Represents 24 hours of the day
Navy blue colour of Ashoka Chakra – Represents truth, truthfulness and secularism