CORRECT answer is option 3.Irrational MEANS not logical or reasonable.Formidable means inspiring fear or respect through being IMPRESSIVELY large, powerful, intense, or capable.Legitimate means CONFORMING to the law or to rules.Illegal means contrary to or forbidden by law, especially criminal law.The sentence conveys that the company agreed to the demands of the EMPLOYEES as they found them conforming to the law or rules. So, option 3 is correct.