Which profit is used for calculating the interest coverage ratio?

The correct answer is option 2- Net profit before interest and tax.

Interest Coverage Ratio is a ratio which deals with the servicing of interest on loan. It is a measure of security of interest payable on long-term debts. It expresses the relationship between profits available for payment of interest and the amount of interest payable. It is calculated as follows:
Interest Coverage Ratio = Net Profit before Interest and Tax/ Interest on long-term debts.