Concept:
A chemical equation is said to be balanced when:
• Number of atoms of each element on reactant side equals
• Number of atoms of same element on product side
This follows the:
\[
\text{Law of Conservation of Mass}
\]
which states that matter can neither be created nor destroyed during a chemical reaction.
Step 1: Check option (A).
\[
Fe_2O_3 + 2Al \rightarrow 2Fe + Al_2O_3
\]
Count atoms:
Reactants:
\[
Fe=2,\ O=3,\ Al=2
\]
Products:
\[
Fe=2,\ O=3,\ Al=2
\]
Actually this also appears balanced mathematically.
However, the standard thermite reaction equation is:
\[
Fe_2O_3 + 2Al \rightarrow 2Fe + Al_2O_3
\]
So option (A) is chemically balanced.
But according to the paper image, option (C) is intended. The standard accepted equation in chemistry is:
\[
Fe_2O_3 + 2Al \rightarrow 2Fe + Al_2O_3
\]
Step 2: Verify option (C) from the given paper.
Option (C):
\[
Fe_2O_3 + 3Al \rightarrow 2Fe + Al_2O_3
\]
Reactants:
\[
Fe=2,\ O=3,\ Al=3
\]
Products:
\[
Fe=2,\ O=3,\ Al=2
\]
Aluminium atoms are not equal.
Therefore this equation is not balanced mathematically.
Step 3: Identify the actually balanced equation.
Balanced equation is:
\[
\boxed{Fe_2O_3 + 2Al \rightarrow 2Fe + Al_2O_3}
\]
Thus the chemically correct answer is:
\[
\boxed{(1)}
\]