Correct option is: (4) \(h + \frac{3}{2}d\)

As shown in Fig. water form the image of object O at \(I_1\) such that \(OI_1 = y = d[1 - (\frac{1}{\mu})]\), so that the distance of image \(I_1\) from water surface will be \(I_1 A = h - y = h - d [1 - (\frac{1}{\mu})]\) . Hence, the distance of this image \(I_1\) from mirror \(MM'\) , \(I_1 M = I_1A + AM\)
\(= [h - d( 1 - \frac{1}{- \mu})] + d = h + [\frac{d}{\mu}]\)
Now, image \(I_1\) will act as object for mirror \(MM'\). As a plane mirror forms image at same distance behind the mirror as the object is in front of is, the image of \(I_1\) formed by the mirror \(MM'\) will be \(I_2\) such that \(I_1 M = I_2 M = h + (\frac{d}{\mu})\) .
Now, this image \(I_2\) will act as object for water again and water will produce image \(I_3\) such that \(I_2I_3 = y = d(1 - \frac{1}{\mu})\) . So, the distance of image \(I_3\) from the surface of water AC will be
\(AI_3 = AM + MI_2 = I_2 I_3 = d + [h + \frac{d}{\mu}] - d[1 - \frac{1}{\mu}]\)
\(AI_3 = h + 2 \frac{d}{\mu} = h + \frac{3}{2}d\)