ans is c(3)
If the size of the page table>=Page Size we go for multilevel paging , Paging is Applied on the Pages of page table until first level page table size<==Page size.
in the question there is a misprint, INSTEAD OF PTE{page table entry} size ptr size is given.
Page Table Size=#of Pages*Page Table Entry Size
#of Pages=LAS/Page Size
PTE=4B
--->1st time paging{last level page table}
Page table Size=(2^32/2^10)*2^2B
Still page table size ==2^24>>page size(2^10)
--->2nd time paging{second last page table}
Page Table Size=(2^24/2^10)*2^2
2^16>>2^10
--->3rd time paging
Page Table Size=(2^16/2^10)*2^2B
Now page Table Size=2^8==256Bytes <Page Size
So
3 level page table is required ,so that outer page table fit in one page frame.