Correct Answer - Option 2 : 11:00 PM

The logic is :

5 Am |
First day |

5 Am |
Second day |

5 Am |
Third day |

5 Am + (5 Am to 10 Pm = 17 Hours) |
Fourth day |

Number of hours between 5 a.m to 10 p.m of 4th day = 24 × 3 + 17

= 72 + 17 = 89 Hours

The clock loses 16 minutes in 24 hours.

This clock shows 23 Hour 44mins = Actual correct clock time is 24 Hours

23 + 44/60 Hours(minutes converted into Hours) = 24 Hours

23 + 11/15 Hours = 24 Hours

Now, for 1 Hour = 24 × 15/(15 × 23 + 11)

= 24 × 15/(356)

So, for 89 Hours = 24 × 15/(356) × 89

= 6 × 15 = 90 Hours

The true time of clock is (90 - 89 = 1Hour) more than the current showing time = 10 p.m on 4th day + 1 Hour = 11 p.m on 4th day

Hence, '11:00 PM' is the correct answer.