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Option 2 : B
The error lies in part B of the sentence. Thus, option 2 is correct.
The given sentence is in the past indefinite tense and talks about an incident that has occurred and is no longer happening. In such cases, the verb used should be in simple past tense.
For example- I was in the market yesterday.
Therefore, ‘has been’ will be replaced by ‘was’.
CORRECT SENTENCE:
My watch was stolen yesterday.
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