Hi Harpreet,

yes, you can add physical education in calculation of best four. 

But since it is not a subject mentioned in list C1 or C2, 2.5% will be deducted from % of best four. Here,2.5 % marks means 10 marks. So include marks of physical education in your best 4 only when the marks of your next best subject is 10 marks less than your marks in physical education.