The correct answer is Physical capital.Physical CapitalTools, machines, buildings:Tools and machines range from very simple tools such as a farmers plough to sophisticated machines such as generators, turbines, computers, etc. Tools, machines, and buildings can be used in production over many years, and are called fixed capital.Raw materials and money in hand:Production requires a variety of raw materials such as the yarn used by the weaver and the clay used by the potter.Also, some money is always required during production to make payments and buy other necessary items.Raw materials and money in hand are called working capital.Unlike tools, machines, and buildings, these are used up in production.Hence, Option 3 is correct.Additional InformationHuman capitalIt is meant the stock of people equipped with education, skills, health, etc.It has now been found that the rate of growth achieved in developed countries cannot be wholly explained by the increases in physical capital and advances in technology.Working capitalProduction requires a variety of raw materials such as the yarn used by the weaver and the clay used by the potter.Also, some money is always required during production to make payments and buy other necessary items.Raw materials and money in hand are called working capital. Unlike tools, machines, and buildings, these are used up in production.