Correct option is B
(A) Pegged exchange rate system: This system fixes the exchange rate of a currency to another currency (usually a strong one) or to a commodity like gold. (Matches with II - Fixed exchange rate system)
(B) Managed floating: This system allows a currency's exchange rate to fluctuate within a certain band, with government intervention to maintain stability. (Matches with III - Dirty floating)
(C) Bretton Woods Conference: This 1944 conference established the International Monetary Fund (IMF) and the World Bank, laying the foundation for the pegged exchange rate system. (Matches with I - Setting up of IMF and World Bank)
(D) Third element in BOP: The Balance of Payments (BOP) has three main components: current account, capital account, and financial account. The third element typically refers to the financial account. (Matches with IV - Error and Omission Account - While not a perfect match, the error and omission account are part of the financial account in BOP, and it captures the discrepancy between the recorded transactions in the current and capital accounts)
