Answer: Severely depressed.
Step 1: The APGAR score grades five signs, each 0 to 2: Appearance (colour), Pulse (heart rate), Grimace (reflex irritability), Activity (muscle tone) and Respiration. Maximum is 10.
Step 2: Interpretation: 7 to 10 is normal, 4 to 6 is moderately (fairly) depressed, and 0 to 3 is severely depressed and needs immediate resuscitation.
Step 3: A score of 3 falls in the 0 to 3 band, so the baby is severely depressed.
Step 4: Because the baby is critically low, saying further resuscitation is not needed (option b) is wrong, and it is clearly not mildly depressed or normal. Ref: Nelson Textbook of Pediatrics.