Question: The attribute car color has four possible values ( black , brown, gold, and white ) . What is the best way to transform this

The attribute car color has four possible values (black, brown, gold, and white). What is the best way to transform this attribute?
Group of answer choices
Transform it to a numerical variable with values 1,2,3,4
Transform it to four binary variables
Transform it to three binary variables
Transform it to a binary variable with values 1,0

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