Arun has been promoted as production manager of the North-East division of a company. Now he is working at:

Middle level of management

The correct answer is Option (3) → Middle level of management

As a production manager of a division, Arun is responsible for implementing plans made by top management and overseeing the work of lower-level managers and employees. This role belongs to the middle level of management, which acts as a link between top and operational levels.