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 top half is folded down onto the bottom half, so opening it copies the hole across the horizontal fold line. So the opened sheet has 2 holes, placed symmetrically about the fold line.

Option (1) — Incorrect. The holes have been copied across the vertical fold line instead of the horizontal fold line, so they are in the wrong places.
Option (2) — Incorrect. It has an extra hole: the opened sheet has 2 holes, this option shows 3 holes.
Option (4) — Incorrect. It shows only the holes as punched; their copies across the horizontal fold line are missing.