We can reduce eddy currents in the core of transformer by:

The correct answer is Option (2) → taking laminated core

The changing flux in the iron core induces circulating eddy currents in the core itself, which heat it. A laminated core is built from thin sheets insulated from each other, so each loop of eddy current is confined to one thin sheet. This makes the resistance of the loops large and the induced currents small, and the heating falls. The number of turns, the step-up or step-down ratio and the voltage do not change the way the flux induces currents in the bulk of the core.

Note: A similar question was also asked in CUET (UG) 2026 on 21-05-2026 (Slot 2).

NCERT (2026-27):
Transformers – “… (iii) Eddy currents: The alternating magnetic flux induces eddy currents in the iron core and causes heating. The effect is reduced by using a laminated core.”