Correct option is : (2) 0.163 cm
Least count of screw gauge \( =\frac{\text { Pitch }}{\text { No. of divisions on circular scale }}\)
\(\Rightarrow\) Least count \(=\frac{1}{100}=0.01 \ \mathrm{mm}\)
Final reading \(=\mathrm{MSR}+\mathrm{CSR} \times\) L.C.
\(=1 \ \mathrm{mm}+(63)(0.01) \ \mathrm{mm} \)
\(=1.63 \mathrm{~mm}\)
\( =0.163 \mathrm{~cm}\)