If UPKAR is coded as UOQJLAQS, then the code for HONEY will be:

GIOMOEXZ

The correct answer is Option (3) → GIOMOEXZ

UPKAR is coded as UOQJLAQS, then the code for HONEY will be

THE LOGIC FOLLOWED HERE IS :

VOWEL ARE CODED UNCHANGED

CONSONANTS ARE +1 AND -1

AS

U → (+0) → U

P → (-1) → O

P → (+1) → Q

K → (-1) → J

K → (+1) → L

A → (+0) → A

R → (-1) → Q

R → (+1) → S

SIMILARLY

H → (-1) → G

H → (+1) → I

O → (+0) → O

N → (-1) → M

N → (+1) → O

E → (+0) → E

Y → (-1) → X

Y → (+1) → Z