Final answer:
The correct answer is Option 3: Principal. A principal is someone who undertakes to perform, fulfill a contract, or meet an obligation.
Step-by-step explanation:
The correct answer is Option 3: Principal.
A principal is someone who undertakes to perform, fulfill a contract, or meet an obligation. They are the main party involved in a transaction or agreement. They have the primary responsibility for ensuring that the terms of the contract or agreement are met.
For example, in a loan agreement, the principal is the borrower who is obligated to repay the loan. If the borrower fails to repay the loan, the lender may take legal action to recover the money from the principal.