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Please find below the answer:

The correct option is (3)
The limbic system is a complex set of structures lying on both sides of the thalamus. It plays a role in our emotional life and the formation of memories. It includes the hypothalamus (related to olfaction as well as regulation of sexual behaviour), hippocampus and amygdala and some other nearby areas such as prefrontal cortex, basal ganglia etc.

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