Final answer:
A high-occupancy-vehicle sign designates a traffic lane for use by vehicles with two or more occupants, aiming to promote carpooling and reduce congestion.
Step-by-step explanation:
A high-occupancy-vehicle (HOV) sign indicates that a traffic lane is reserved for vehicles with multiple occupants. This special type of road signage is utilized to encourage carpooling and reduce traffic congestion by allowing only vehicles that meet a minimum occupancy requirement, such as two or more people, to use the lane (Option 3: Multiple passengers required).
Option 1, which states 'Only motorcycles allowed', Option 2, 'Parking only', and Option 4, 'No entry', do not correctly describe what an HOV lane is. The clear purpose of an HOV lane is to facilitate more efficient transportation by rewarding drivers who share their vehicle with passengers and thereby take additional cars off the road during peak traffic times.