The correct answer is A. Rs. 3,000.
The balance of property at cost has been Rs. 20,000 and Rs. 17,000 in 2015 and 2016, respectively. This means that the property was sold in 2016 for Rs. 3,000. The profit on the sale of property of Rs. 2,000 is credited to capital reserve account. This means that the profit is not included in the sale proceeds. A new property costing Rs. 5,000 was bought in 2016. This means that the sale proceeds from the property were used to buy a new property. Therefore, the sale proceeds from the property is Rs. 3,000.
Option B is incorrect because it is the total of the profit on the sale of property and the cost of the new property. Option C is incorrect because it is the cost of the new property. Option D is incorrect because it is the sum of the balance of property at cost in 2015 and 2016.