The 'Bt' in Bt toxin stands for:

The correct answer is Option (3) → Bacillus thuringiensis

Option (3) Bacillus thuringiensis — Correct. Bt stands for Bacillus thuringiensis.

NCERT Extract:
Biotechnological Applications in Agriculture – “… Bt Cotton: Some strains of Bacillus thuringiensis produce proteins that kill certain insects such as lepidopterans (tobacco budworm, armyworm), coleopterans (beetles) and dipterans (flies, mosquitoes). B. thuringiensis forms protein crystals during a particular phase of their growth. These crystals contain a toxic insecticidal protein. … Actually, the Bt toxin protein exist as inactive protoxins but once an insect ingest the inactive toxin, it is converted into an active form of toxin due to the alkaline pH of the gut which solubilise the crystals. The activated toxin binds to the surface of midgut epithelial cells and create pores that cause cell swelling and lysis and eventually cause death of the insect.”