Final answer:
Option (3), Goats' hair is used to produce wool, a fabric that is warm even when wet, and is made by shearing, washing, and spinning the fibers into yarn.
Step-by-step explanation:
The material used for goats' hair in the Animal Kingdom is wool. Goat hair can be sheared and processed much like the fibers from sheep, llamas, or yaks to produce a fabric that is highly valued for its ability to retain warmth even when wet. The process of creating wool involves shearing the animals' coats, washing, and spinning the fibers into yarn.
This yarn is then dyed and woven on looms to create woolen fabrics suited for various uses such as clothing and textiles.