1. Error Detection Capability ($t_d$)
To detect $t_d$ errors, the minimum Hamming distance must satisfy:
$$d_{\min} \ge t_d + 1$$
Substituting $d_{\min} = 3$:
$$3 \ge t_d + 1 \implies t_d \le 2$$
Result: The code can detect up to 2 bit errors.
2. Error Correction Capability ($t_c$)
To correct $t_c$ errors, the minimum Hamming distance must satisfy:
$$d_{\min} \ge 2t_c + 1$$
Substituting $d_{\min} = 3$:
$$3 \ge 2t_c + 1$$
$$2 \ge 2t_c$$
$$t_c \le 1$$
Result: The code can correct 1 bit error.
Conclusion
Combining these two maximum capabilities:
This corresponds to Option B.
Correct Answer:
B. We can correct 1 bit errors and detect 2 bit errors.