The sequence of folding a piece of paper and the manner in which the folded paper has been cut is shown in the following figures. How would this paper look when unfolded?

Answer & explanation
Correct answer: option 2
The correct answer is Option (2) →
The sheet is folded along both diagonals, so the folded piece is the right-hand quarter of the square, four layers thick. Each cut repeats in all four quarters when the sheet is opened, as mirror images across the fold lines:
The circle cut in the middle of the piece gives a circle near the middle of each side: 4 circles.
The two half-circles cut on the folded edges near the corners give a full circle on each diagonal near each corner: 4 circles.
The cut at the point of the piece, where all four layers meet at the centre of the sheet, gives one larger circle in the centre.
