Suppose GDP deflator is 300, what comprehension can be made from it?

The correct answer is Option 3: Implies that price level has gone up by 200%

The GDP deflator of 300 means that nominal GDP is three times real GDP, implying that the price level has risen by 200% compared to the base year.

GDP Deflator Formula:

GDP Deflator=(Nominal GDP/Real GDP) *100

$$\text{Nominal GDP}=3\times \text{Real GDP}$$