Formative assessment helps in

The correct option is providing qualitative feedback to learners to improve.

Understanding Formative Assessment:
Formative assessment refers to a variety of formal and informal assessment procedures conducted by teachers during the learning process. The primary goal of formative assessment is to monitor student learning and provide ongoing, qualitative feedback that can be used by instructors to improve their teaching and by students to improve their learning.

Analysis of Options:

1. Assessing a teacher’s efficiency in teaching: While teacher self-reflection occurs, the primary design and purpose of formative assessment center on student learning progress and diagnostic feedback.

2. Providing qualitative feedback to learners to improve: Correct. Formative assessments identify gaps, strengths, and target areas that need work, offering actionable qualitative insights rather than just final numerical marks or ranks.

3. Creating an environment where learners can compete with each other: Formative assessment emphasizes individual growth, self-evaluation, and collaborative learning rather than unhealthy competition.

4. Engaging learners in meaningful tasks and preparing them for competitive exams: Preparing for competitive exams is typically associated with summative or standardized testing. Formative assessment focuses on continuous improvement within the ongoing curriculum.