As per IS 732, a leakage current in an installation should not exceed __________ of the full load current.
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Sign in to submit a reportUnder the IS 732 rule referenced by the paper, installation leakage current should not exceed 1/5000 of the full-load current. Limiting leakage is important for shock protection, insulation health and avoiding unwanted protective-device operation.

Leakage limit is a very small fraction: 1/5000 in this question.
Choosing 1/100 simply because it is easier to remember; that would be far too large.
Standards can be edition-specific; preserve the exam's referenced code context.