Literacy rate is defined as the proportion of people in a specified age group who can both read and write with comprehension in at least one language. It serves as a basic indicator of educational attainment and human capital. The stem repeats this definition,so literacy rate is the correct term. Higher literacy is closely linked to better development outcomes.
Option A:
Gross enrolment ratio measures total enrolment in a specific level of education relative to the population of the age group that officially corresponds to that level. It does not directly indicate reading and writing ability,so it is not suitable for the blank.
Option B:
School attendance rate captures how many children are currently attending school,but some attendees may still lack functional literacy. It therefore cannot substitute for the more precise reading and writing measure requested.
Option C:
Literacy rate directly addresses the skills of reading and writing with understanding. It is usually calculated for age 7 and above in the Indian context. Because the stem mentions these abilities,this option correctly identifies the indicator.
Option D:
Dropout rate reflects the proportion of students who leave school before completing a particular stage. It is an educational concern but does not describe the ability to read and write,so it does not match the definition given.
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