Correct Answer: 1996

Solution : The percentage increase in production compared to previous year for different years are:
In 1996 = [$\frac{(40 - 25)}{25}$×100]% = 60%.
In 1997 = [$\frac{(60 - 40)}{40}$×100]% = 50%.
In 1998 there is a decrease in production.
In 1999 = [$\frac{(65 - 45)}{45}$×100]% = 44.44%.
In 2000 there is a decrease in production.
In 2001 = [$\frac{(75 - 50)}{50}$×100]% = 50%.
In 2002 = [$\frac{(80 - 75)}{75}$×100]% = 6.67%.
Clearly, there is maximum percentage increase in production in 1996.