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Option 2 : B

Correct option - 2

Here, concept of infinitive verb is brought under consideration. Since, 'to' is a preposition which is followed by adjective 'formal', but looking at the context, an employment is formal only. Thus, we should replace formal with verb formalize that makes it an infinitive verb 'to formalize'. Hence, option 2 is the correct answer.

Correct sentence - The present government in its efforts to formalize employment, has incentivised the employer to enroll workers under the Employee Provident Fund.

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