To solve this problem, let's first break it down using the information given in the image.

Information from the Table:

1. Company 1:

   • Current Share Price: £0.67
   • Outstanding Shares: 3,530,601

2. Company 3:

   • Current Share Price: £0.95
   • Outstanding Shares: 3,507,341

The formula for Market Value is: $\text{Market Value} = \text{Current Share Price} \times \text{Outstanding Shares}$

Step 1: Initial Market Values of Company 1 and Company 3

• Company 1 Market Value: $0.67 \times 3,530,601 = £2,366,502.67$
• Company 3 Market Value: $0.95 \times 3,507,341 = £3,331,973.95$

Step 2: Adjust the Market Values based on the changes

• Company 1: Market value dropped by 6.5%. Therefore, its new market value is: $\text{New Market Value of Company 1} = £2,366,502.67 \times (1 - 0.065) = £2,214,494.89$

• Company 3: Share price increased by 3.2%. The new share price is: $\text{New Share Price of Company 3} = 0.95 \times (1 + 0.032) = £0.9804$ Therefore, the new market value is: $\text{New Market Value of Company 3} = 0.9804 \times 3,507,341 = £3,437,870.79$

Step 3: Calculate the Difference in Market Value

Now, let's compute the difference in the new market values between Company 1 and Company 3: $\text{Difference} = £3,437,870.79 - £2,214,494.89 = £1,223,375.90$

However, this difference is not among the options listed in the image. The discrepancy could be due to rounding differences or some minor adjustments. Please verify the values or give further clarification if needed.

Do you need any further details or calculations? Here are some follow-up questions you might want to consider:

1. Would you like a breakdown of how each percentage change affects the market values?
2. Are there any rounding rules I should apply for further accuracy?
3. Would you like me to calculate the difference using other methods (e.g., using different exchange rates)?
4. Do you want to understand how share prices affect market value calculations more deeply?
5. Do you need further explanations regarding the significance of outstanding shares?

Tip: Always check for rounding in financial calculations, as it can significantly affect the final results when dealing with large numbers.