How does paraphrasing avoid becoming plagiarism?

Multiple Choice

It uses almost the same wording as the original.

It uses the original quotation, but does not include quotation marks.

It significantly alters the original words and sentence structure, but gives credit to the originator.

It automatically helps you document references to others$$ ideas.

If it is done effectively, then you need not give credit to the original speaker or writer for the idea.