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XAT 2018 Question Paper | Business Decision Making

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XAT Business Decision Making
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Question 17 : Six months later, the three realized that the solution offered by the wise man in the previous question wasn't working to the satisfaction of all, because it did not help them find the appropriate value of resources. Therefore, they reverted to status quo ante. After one year, all three of them wanted to construct a house each, on their respective property. Three types of resources-1.Timber, 2.water and 3.stone & sand- were required to build a house. While each had one resource in abundance none of them had all the three in sufficient quantity. They still could not come to an agreement on how to fairly value and use each other's resources to construct the house. They again approached the wise man for advice.

The wise man studied the situation carefully and proposed the following actions:
1. The governing body of the United Federation of Islands, of which the island hill is a part, should take ownership of all the three properties and construct houses for the three.
2. Each person should own one third of each of the resources.
3. The three persons should arrive at the value of resources by trading the resources among them.

Which of the following is the most appropriate in the best interests of A, B and C?