A sheet of paper is folded along the dotted line successively along the directions shown and is then punched in the last. How would the paper look when unfolded?

To determine how the paper will look when completely unfolded, let us analyze the sequence of folding and punching step-by-step as shown in the question image:

Step 1: Analyzing the Folding Process
1. Initial State: A square sheet of paper is provided.
2. First Fold: All four triangular corners of the square sheet are folded inward towards the center along the diagonal dotted lines.
3. Hole Punching: Four circular holes are punched into the folded corner flaps. Specifically, one hole is punched near each of the four folded triangular corners.

Step 2: Unfolding the Paper
When the four folded triangular corners are opened back out to their original positions at the outer four corners of the main square sheet:
1. The circular punch on each triangular flap creates a mirror image across the diagonal fold line.
2. Each corner region will now contain two circular holes:
- One hole remains on the inner region of the main sheet (where the punch went through the underlying layer).
- One hole moves outward onto the outer corner of the sheet (where the flap unfolds back to its original corner position).

Step 3: Final Pattern Analysis
Since there are 4 corners and each corner gets 2 circular holes aligned along the diagonal symmetry line, the unfolded sheet will show 4 groups of 2 circular holes near each of the 4 outer corners of the square paper.

This matches the unfolded pattern shown in the correct option image: