A square piece of paper is folded as shown by the dotted line and the arrow, and the folded paper is punched as shown in the last figure. Choose the figure that shows the paper when it is unfolded.

Answer & explanation
Correct answer: option 3
The correct answer is Option (3) →

When a folded sheet is opened, every hole is repeated as its mirror image across each fold line, the last fold being opened first. Here the lower-left part is folded onto the upper-right part, so opening it copies each of the 2 holes across the diagonal fold line (top-left to bottom-right). So the opened sheet has 4 holes, placed symmetrically about the fold line.

Option (1) — Incorrect. The holes have been copied across the diagonal fold line (top-right to bottom-left) instead of the diagonal fold line (top-left to bottom-right), so they are in the wrong places.
Option (2) — Incorrect. It has an extra hole: the opened sheet has 4 holes, this option shows 5 holes.
Option (4) — Incorrect. One of the copies is missing: the opened sheet has 4 holes, this option shows only 3 holes.