Concept:
Oxygen transport in blood occurs mainly in two forms:
• $\sim 97\%$ of oxygen is transported bound to haemoglobin in RBCs.
• $\sim 3\%$ of oxygen is transported dissolved in plasma.
Step 1: Understand oxygen transport.
Most oxygen binds with haemoglobin.
Step 2: Identify dissolved portion.
A small fraction remains dissolved in plasma.
Step 3: Conclusion.
Thus, 3% oxygen is transported in dissolved form.
Final Answer: Option (B)