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Option 3 : Mohan is ranked third or fourth

Seven candidates: Neeraj, Kalash, Bharat, Saurav, Tarun, Mohan and Varun.

1) If Saurav is ranked sixth and Kalash is ranked fifth.

(It means sixth and fifth place are reserved)

Ranked Name of Candidates
1  
2  
3  
4  
5 Kalash
6 Saurav
7  

2) Each time either Bharat scores the highest and Tarun gets the least, or alternatively Saurav scores the highest and Mohan or Kalash scores the least.

(From this statement only Bharat placed on first place and Tarun placed in seventh place, because Saurav and Kalash position are already fixed)

Ranked Name of Candidates
1 Bharat
2  
3  
4  
5 Kalash
6 Saurav
7 Tarun

3) Varun always scores more than Neeraj.

(It means if we placed Varun at Second place then Neeraj will be placed either third or fourth place)

Ranked Name of Candidates
1 Bharat
2 Varun
3  
4  
5 Kalash
6 Saurav
7 Tarun

4) There are two place are left for Mohan and Neeraj anybody can sit on third and fourth place)

Ranked Name of Candidates
1 Bharat
2 Varun
3 Neeraj/Mohan
4 Neeraj/Mohan
5 Kalash
6 Saurav
7 Tarun

From uper sitting arrangment Mohan is ranked either third or fourth place.

Hence, the correct answer is "Option 3".