Correct Answer - Option 1 :

\(11\frac{1}{9}\%\)
**Given:**

Marked price = 35% above the cost price

Profit% = 20%

**Formula used:**

Discount% = (Discount/M.P) × 100%

**Calculation:**

Let the cost price be Rs. 100x

Marked price = Rs. 100x × (135/100)

⇒ Rs. 135x

Selling price = Rs. 100x × (120/100)

⇒ Rs. 120x

Discount = Rs. (135x – 120x)

⇒ Rs. 15x

Discount% = (15x/135x) × 100%

⇒ 100/9%

**∴ The discount% offered on the marked price is 100/9%**