Hi Akash,
Hope you are doing well. During choice entry, the choice 2 states that you can hold this seat and try for round 2. If you get better seats in round 2, this seat will be given to someone else. Otherwise this seat will remain in your favor. If you select choice 3, that means you are not satisfied with the allotted seat and wants to give away this seat and move for round 2. In this case, you will loose this seat and new options will be available to you. So if you want this seat and also try your luck for better seats, I would suggest you to select choice 2. I hope you got the point after reading this answer.

All the best.

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