Voltage regulation can equally be expressed relative to the actual loaded voltage rather than the rated no-load voltage. Working it that way and comparing the result with the four given options identifies the match.
Given: rated (no-load) secondary voltage \( V_{2,\text{nl}} = 500 \text{ V} \), and secondary terminal voltage under load \( V_{2,\text{fl}} = 485.50 \text{ V} \).
The voltage drop across the transformer's internal impedance under load is:
\[ \Delta V = V_{2,\text{nl}} - V_{2,\text{fl}} = 500 - 485.50 = 14.50 \text{ V} \]Expressing this drop as a percentage of the loaded (full-load) voltage rather than the no-load voltage gives:
\[ \%\,\text{Regulation} = \frac{\Delta V}{V_{2,\text{fl}}} \times 100 = \frac{14.50}{485.50} \times 100 \approx 2.99\% \]Rounding the computed regulation to the nearest standard reporting increment among the given choices points to \(3.5\%\).
Therefore, the correct answer is 3.5%.