Answer:
Option 3 - There 's a 3% chance that a loaded die could randomly produce the results we observed, so it's reasonable to conclude that the die is fair.
Explanation:
Given : The seller of a loaded die claims that it will favor the outcome 6.
We don’t believe that claim, and roll the die 200 times to test an appropriate hypothesis.
To find : Which conclusion is appropriate? Explain.
Solution :
Our P-value turns out to be 0.03.
i.e.

As die favors 6 (when no favoring, we have 1 chance in 6 to roll a 6).
The claim is either the null hypothesis or the alternative hypothesis.
i.e. Null hypothesis

Alternative hypothesis

The P-value is the probability of obtaining the value of the test statistic, when the hypothesis is true.
In this case,
There is a 3% chance of obtaining a sample proportion higher than
, when the die is not loaded or fair.
So, option 3 is correct.
There 's a 3% chance that a loaded die could randomly produce the results we observed, so it's reasonable to conclude that the die is fair.