Final answer:
The best action consistent with an assets-based approach to literacy instruction is Option 3: Tailoring instruction to individual strengths, as it builds on students' existing abilities.
Step-by-step explanation:
A teacher interested in identifying literacy skills and strengths among students should opt for an assets-based approach to literacy instruction. The actions aligned with this approach would involve Option 3: Tailoring instruction to individual strengths. This method allows educators to build on what students already excel in and use those abilities as a foundation for further learning. As opposed to a deficit-based approach, which focuses on weaknesses, or a one-size-fits-all methodology, an assets-based approach acknowledges students’ unique talents and crafts lessons to enhance and leverage those talents, ultimately creating a more inclusive and effective learning environment.