In the sentence "He took a loan of hundred rupees from me.", the underlined phrase needs to be checked. Choose the option that best improves the underlined expression, or select no improvement if it is already correct in standard English.

Introduction / Context:
This question tests standard usage of common financial terms such as loan, debt, demand, and advance. The sentence describes a person taking a small sum of money from someone else. You must decide whether the word loan is appropriate or whether one of the proposed substitutions expresses the intended meaning more accurately in everyday English.

Given Data / Assumptions:

• Sentence: He took a loan of hundred rupees from me.
• The underlined portion is a loan of hundred rupees.
• Options: debt, demand, advance, and no improvement.
• The context is a small personal borrowing of money.

Concept / Approach:
A loan is a sum of money that is borrowed and expected to be paid back, sometimes with interest. This is exactly what the sentence describes. A debt is a broader term for an amount owed, but we do not usually say took a debt; instead, we say incurred a debt or ran into debt. Demand is not a synonym here, and advance is used for money given before it is due, such as an advance payment or salary advance. Thus, the original phrase took a loan of hundred rupees is the most natural and correct in this context, except that an article a is usually added before hundred. Since the options focus on the key noun, loan is still the best choice, so no improvement is required with respect to that noun.

Step-by-Step Solution:
Step 1: Identify the meaning conveyed: the person borrowed money from the speaker. Step 2: Check the usage of loan. The collocation take a loan is very common when someone borrows money, for example, He took a loan from the bank. Step 3: Evaluate debt. In English, one does not normally say took a debt. Instead, one has a debt, is in debt, or gets into debt, so substituting debt would result in unidiomatic usage. Step 4: Evaluate demand. Demand refers to a request or need for something and has nothing to do with borrowing money in this structure. Step 5: Evaluate advance. An advance is money given ahead of time, usually by an employer or buyer. The sentence does not indicate that the speaker is giving money in advance of some service or obligation, so advance is not the most accurate word here. Step 6: Conclude that loan is the correct term to describe money that is borrowed to be repaid later, so the best choice is no improvement.

Verification / Alternative check:
Recast the sentence slightly to correct the missing article and test the collocation: He took a loan of a hundred rupees from me. In this form, it is a natural and standard English sentence. Replacing loan with debt would require a different verb, such as He incurred a debt of a hundred rupees, which is not one of the given choices. Similarly, He took a demand or He took an advance from me for a hundred rupees changes the meaning or sounds odd. These tests confirm that loan is appropriate in this context.

Why Other Options Are Wrong:
Debt refers to an amount owed but does not pair comfortably with the verb took in everyday English. Demand has an entirely different sense related to requests or claims. Advance is not wrong in all situations, but here there is no indication of payment before a service; the simpler and more accurate description is a loan.

Common Pitfalls:
Sometimes candidates misinterpret such questions and try to correct every small detail, like the missing article, even when the aim of the question is to test the key noun. Remember that sentence improvement items often focus on one main point. When the noun already captures the correct financial relationship and alternative nouns would distort the meaning, it is safer to choose no improvement and accept that minor issues like a missing a can be repaired separately in editing.

Final Answer:
The expression with respect to the main noun is already correct, so the right choice is no improvement.