Select the most appropriate option to fill in the blank in the follow…

The correct answer is Option (3) → tie down

To tie someone down is to restrict their freedom, to hold them back with rules, duties or conditions. A contract with too many restrictions would limit what the company can do, so "tie down" fits; "with too many restrictions" names what ties it down.
Example: He did not want to be tied down by a long-term job.

Complete sentence: The contract seemed to tie down the company with too many restrictions.

Why the Other Options are Incorrect?

Option 1: tie up — Incorrect. To tie up is to fasten with string or rope, to keep someone busy, or to keep money where it cannot be used; it does not mean to burden with restrictions.
Example: I was tied up in meetings all morning.

Option 2: tie on — Incorrect. To tie something on is to attach it by tying, like a label or an apron; it has no sense of limiting someone.
Example: She tied on her apron and began to cook.

Option 4: tie with — Incorrect. To tie with someone is to finish level with them in a contest; it does not mean restrict.
Example: Our team tied with the visitors for first place.