In the following English grammar sentence about taxation, one part may contain an error; choose the part that has the mistake or select the option indicating no error: The long term capital gains on listed securities (1) and the dividend tax on equity mutual funds are the right steps (2) to generate resources required for drive demand in rural India. (3) No error. (4)

Introduction / Context:
This error spotting question uses a sentence from an economic policy context to test your understanding of correct infinitive structures in English. You are expected to locate the grammatical error in one of the numbered parts while keeping in mind that the sentence discusses tax measures and their purpose in stimulating demand in rural areas.

Given Data / Assumptions:
The sentence is divided into four parts: The long term capital gains on listed securities (1); and the dividend tax on equity mutual funds are the right steps (2); to generate resources required for drive demand in rural India. (3); No error. (4). The meaning is that certain taxes are considered appropriate steps to raise resources in order to drive demand in rural India.

Concept / Approach:
The key structure here is to generate resources required to drive demand. After the phrase resources required, the verb drive must appear in the infinitive form to drive to show purpose. The sequence required for drive demand is ungrammatical because for normally takes a gerund or noun, such as for driving demand, not the bare infinitive drive. Correct formal English would use either required to drive demand or required for driving demand.

Step-by-Step Solution:
Step 1: Read part (1) and check for subject verb issues. It clearly presents a correct noun phrase about long term capital gains on listed securities.Step 2: Examine part (2) and verify that it joins the two tax measures and states that they are the right steps, which is grammatically correct.Step 3: Focus on part (3) to generate resources required for drive demand in rural India and notice the awkward phrase for drive demand.Step 4: Recall that after required, when you express purpose, the usual pattern is required to plus base verb.Step 5: Conclude that the phrase should read required to drive demand in rural India, and therefore part (3) contains the grammatical error.

Verification / Alternative check:
If you rewrite part (3) as to generate resources required to drive demand in rural India, the whole sentence becomes smooth and accurate. No other part of the sentence has a clear grammatical issue. The economic idea also becomes clearer, since the taxes raise resources that are then used to stimulate rural demand.

Why Other Options Are Wrong:
Part (1) correctly describes long term capital gains on listed securities and does not misuse any tense or preposition. Part (2) has an accurate compound subject and verb agreement, stating that the tax measures are the right steps. The options suggesting that there is no error misjudge the very visible problem of for drive demand. Only part (3) misuses the preposition for followed by a bare verb form, which is not acceptable in standard written English here.

Common Pitfalls:
Many candidates focus only on economic terms and overlook small grammar issues inside complex phrases. Another common mistake is assuming that for plus base verb is always acceptable because it appears in phrases like for example or for instance. In fact, for usually links to nouns or gerunds, while required is more naturally followed by to plus base verb when expressing purpose.

Final Answer:
The erroneous part is Part (3) to generate resources required for drive demand in rural India, which should be corrected to required to drive demand in rural India.