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I don't understand the explanation for the third option...
Option states
An instance of the nested class can be created from a class of package mypack using: new TestInner().
Explanation states:
Any class can statically import TestClass.TestInner like this: import static mypack.TestOuter.TestInner; and then create an instance of TestInner like this: TestOuter.TestInner ti = new TestOuter();