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Explanation:

The rupee is cheapest with respect to the dollar when the numerical value of rupees corresponding to 1 dollar is the highest

i.e. If 1 US $ = X INR, then the rupee is cheapest when X takes its largest numerical value.

The value of the rupee with respect to the dollar for the given years is:

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Thus, the rupee is cheapest in 2002.
 
Hence, option (b).

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