Step 1: Understand Rancidity.
Rancidity is the process of degradation of fats and oils due to oxidation. This occurs when unsaturated fatty acids in oils and fats react with oxygen in the presence of heat, light, or catalysts, leading to the formation of unpleasant odors and flavors. Step 2: Analyze Each Option.
Option (1): Oil — Incorrect, as rancidity affects both oils and fats, not just oils.
Option (2): Fats — Incorrect, as rancidity affects both oils and fats, not just fats.
Option (3): Oil and Fats — Correct, as rancidity is caused by the oxidation of both oils and fats.
Option (4): None of these — Incorrect, as options (1) and (2) are partially correct, but the most accurate answer includes both oils and fats. Step 3: Final Answer. $ $