Sir I have doubt the answer Mediation is not correct because in the Q given is that binding instead of non binding word ,in my opinion that the answer should be arbitration due to binding word so please clarify my doubt by giving correct answer with illustrations

At Cobalt Blue Inc. there is a dispute between an employee and his supervisor (i.e., the organization). The two parties have agreed to submit the dispute to a neutral third party. The decision of the third party will be binding on both of the disputants. This form of dispute resolution is known as arbitration. mediation. nullification. reconciliation